Crain's Detroit Business, November 7, 2022, issue by Crain's Detroit Business

POPULATION BOOM: What can rest of state learn from West Michigan’s growth? PAGE 3

NOTABLE MONEY MANAGERS. PAGE 13

CRAINSDETROIT.COM I NOVEMBER 7, 2022

‘Kia Boyz’ car thefts on the rise in Detroit

A MIXED BAG FOR LOCAL DEVELOPERS

PHOTOS BY LAURÉN ABDEL-RAZZAQ AND KIRK PINHO/CRAIN’S DETROIT BUSINESS

Home builders lack optimism in 2023, but commercial construction sees a return to normal. Starts on Page 8

NEWSPAPER

Dealerships, owners deal with fallout

Kia and Hyundai cars stolen in Detroit

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BY KURT NAGL

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The social media-inspired trend of stealing certain Kia and Hyundai models is still going strong in the Detroit area as car owners, dealers and police await a solution. The root of the problem is ignition systems on certain models of the South Korean cars that are easily hot-wired, according to officials. TikTok, though, is what sparked the vulnerability into a viral headache. The so-called “Kia Boyz” challenge — a trend on video social media platform TikTok that demonstrates how to quickly hot-wire the cars and encourages viewers to re-

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May June July Aug. Sept. Oct.*

*AS OF OCT. 19; FULL MONTH NOT AVAILABLE. SOURCE: DETROIT POLICE DEPARTMENT

cord themselves doing it — started in Milwaukee last year. It has since spread throughout the Midwest and beyond. See KIA BOYZ on Page 24

Wayne County pulls out of small-biz plan $32M commitment to NEI won’t happen BY SHERRI WELCH

Wayne County has pulled out of a $32 million commitment to the New Economy Initiative to provide expanded support for small businesses in the county. Announced during the Mackinac Policy Conference in June, the county’s contribution was to have gone toward a $54 million fund dubbed the Wayne County Small Business Hub. It would have marked the first public commitment to NEI and pro-

vided significant funding for the organization to expand beyond Detroit to nonprofit business support organizations around the county. Private funder commitments totaling $22 million preceded the county’s planned contribution, which was to have come from the $339 million American Rescue Plan Act dollars awarded to the county. The commitment was contingent on approval of the Wayne County Commission but did not go to the commission, the county said. The county has since pulled pulled back from its public pledge.

CONVERSATION

COMMENTARY

Zap Zone founder Gaz Ismail does the business of fun differently. PAGE 26

Whitmer or Dixon will own an uncertain economy. PAGE 6

See WAYNE on Page 24

NEED TO KNOW

AWARDS PROGRAM

THE WEEK IN REVIEW, WITH AN EYE ON WHAT’S NEXT

` TESLA BUILDING ‘UNIQUE’ NEW FACILITY IN SOUTHFIELD THE NEWS: Southfield officials have signed off on Tesla Inc. opening what is being described as a unique EV research, testing, repair and maintenance facility. The Austin-based automaker headed up by Elon Musk has started work on a building at 21375 Telegraph Road north of Eight Mile Road, as it adds about 7,000 square feet to the existing structure to create a 34,500-square-foot property.

other luxury goods, has again turned to layoffs as executives continue to restructure the company. The layoffs impact just fewer than 80 employees in corporate roles. Those affected were provided severance packages, health benefits, professional outplacement services, employee assistance plan (mental health support), extended stock option exercise window, 401(k) match vesting and the option to keep company laptop computers. WHY IT MATTERS: The company previously laid off more than 100 employees in late June. The company had more than 1,500 employees as of the end of last month.

` BYRON ALLEN TO BID ON WASHINGTON COMMANDERS

` STOCKX LAYS OFF EMPLOYEES FOR SECOND TIME SINCE JUNE

THE NEWS: Media entrepreneur and Detroit native Byron Allen is preparing a bid for the Washington Commanders football team in what would be his second attempt this year to acquire a National Football League franchise, according to people familiar with the matter. Allen is working with an investor group, according to people familiar with his ambitions who asked not to be identified because the discussions are private.

THE NEWS: StockX LLC, the Detroit-based reselling e-commerce platform for sneakers, handbags and

WHY IT MATTERS: If Allen succeeds buying the Commanders, he would be the first Black majority owner of an

WHY IT MATTERS: It’s unclear precisely what differentiates the Southfield center from a service center in Clarkston that opened in 2020, or one in Grand Rapids that opened in 2021. Southfield’s planning director said it was the only one of its kind in Michigan and the next-closest is in Chicago.

NFL team, potentially easing some of the reputational hits taken by the league during yearslong controversies around race and social justice.

` DETROIT UNEMPLOYMENT RATE HITS 22-YEAR LOW THE NEWS: The city of Detroit’s unemployment rate is the lowest it’s been since September 2000, according to the U.S. Bureau of Labor Statistics. The city’s unemployment rate was 7 percent in September, down from 7.9 percent in August and 12.5 percent this time last year, according to a news release from Mayor Mike Duggan’s office. The city’s unemployment rate spiked to 38 percent in May 2020 during the early months of the COVID-19 pandemic. WHY IT MATTERS: Detroit is still above the national rate of 3.5 percent in September, according to BLS data, with Michigan a little behind at 4.1 percent.

` DEVELOPER PLANS TOWNHOME PROJECT NEAR GRAND RAPIDS THE NEWS: An Indiana real estate developer plans to build a sprawling townhome community in suburban Grand Rapids. Terra Haute-based Thompson Thrift Residential on July 27 spent $5.4 million on 28.5 acres at 4111 64th St. SW in the Grand Rapids

Join Crain’s in honoring our 40 under 40 ` Tickets are on sale now for Crain’s Detroit Business’ annual 40 Under 40 celebration of the year’s biggest movers, shakers and risk takers. Among the honorees: CEOs, presidents, founders, mayors and other top executives. They were nominated by their colleagues and peers and selected through a rigorous review process by Crain’s Detroit Business reporters and editors. The event takes place Nov. 10 from 6-9 p.m. and features an awards presentation and stroll-

suburb of Wyoming, according to city property tax records. The company said last month in a news release it plans to build a 344-unit luxury multifamily community on the property called The BLVD at Wilson Crossings, with a late 2023 target opening date. WHY IT MATTERS: The Grand Rapids area is experiencing a housing shortage at all price points, driven by a population boom over the past decade.

` CANADA GOOSE TO OPEN POP-UP IN TROY THE NEWS: Winter outerwear giant

ing dinner and afterglow celebration. The event is being held on the 16th floor of the One Campus Martius building in the heart of Detroit. Tickets cost $85 for individuals, $300 for a group of four and $600 for a group of eight. For more information and to buy tickets, go to crainsdetroit. com/40s.

Canada Goose will bring its high-end parkas and apparel to Somerset in a pop-up shop opening Nov. 16 and running through 2023, according to a news release. The store is setting up on Level 3 of the mall’s south side, next to luggage retailer Tumi. Canada Goose takes over a space previously occupied by athletic wear retailer Lululemon, which relocated to a larger space in the south part of the mall. WHY IT MATTERS: This is Canada Goose’s first standalone retailer in Michigan. The company, founded in 1957 in Toronto, has 329 U.S. stores and authorized retailers. It reported revenue of $850 million in 2021.

SPONSORED CONTENT

Painting a clearer picture of accounting Eight ways accounting advisers can help minimize confusion, restore confidence for businesses By Deloitte & Touche LLP The field of accounting is far from black-andwhite. There are complicated questions and often a high degree of judgment required when applying the rules. Documenting complex transactions and the related accounting conclusions can be challenging given today’s standards for internal controls over financial reporting. At the same time, finance departments are expected to create value across the entire business and finance leaders are expected to play a key role in many corporate decisions. It’s critical that accounting and financial reporting are handled efficiently and with an eye toward what’s best for the organization. While an organization’s independent auditors can be helpful in identifying applicable guidance and discussing the application of such guidance in practice, there are limits to the amount and type of advice an independent auditor can provide due to applicable independence regulations.

Accounting advisory services: From confusion to confidence An accounting adviser can help resolve issues and potentially lower the overall cost of your

2 | CRAIN’S DETROIT BUSINESS | NOVEMBER 7, 2022

financial statement audit. Here are eight ways an accounting adviser can help businesses gain confidence in their financial affairs: 1. Bring an experienced perspective: Do you need to reach informed accounting conclusions on tough, frequently asked questions? 2. Lead an open dialogue: Are you looking to have early-stage conversations about topics that you might not feel ready yet to discuss with your independent auditor? 3. Explain the nuances of accounting guidance: Do you hope to understand the rationale behind the accounting impacts of the strategic decisions your company makes? 4. Advocate for a chosen approach: Are you seeking help fleshing out your approach to a highly judgmental accounting issue, as well as help articulating and supporting your positions to your independent auditor? 5. Examine alternative angles: Are you prepared to dig deep to expand your point of view on an accounting issue at hand to achieve the preferred accounting treatment? 6. Address thorny issues early: Are you seeking earlier identification and resolution of issues to reduce last-minute fire drills?

7. Improve internal controls: Are you looking for an extra layer of control that your independent auditor might appreciate? How about a fresh evaluation of your control environment as a whole? 8. Improve audit readiness: Are you aiming to provide your auditor with a thorough and comprehensive analysis of your accounting position and gain the confidence that your approach to complex accounting issues is sound?

Energize your accounting When an accounting adviser helps navigate complexities and has a well-reasoned approach, the investment may benefit not only your accounting department, but your entire organization. Accounting advisers ultimately help companies prepare a better work product. That higherquality product may reduce independent auditor interaction time and possibly the overall cost of the audit while providing relief from upward pressure on base audit fees over time. Tapping into the experience and knowledge of an accounting adviser allows you to better understand and address complex accounting challenges. And that can translate to letting

you spend less time on your audit and more time and attention on your business. To find out more about what accounting and financial reporting advisers may do for your business, contact John Tomas, Managing Director, Deloitte & Touche LLP at jtomas@deloitte.com, 313-396-3182.

FINANCE

WEST MICHIGAN

Much of Michigan is in a population decline.

Why is Grand Rapids booming?

Shift works in UWM’s favor over Rocket Purchase volume pays off over refinancing BY NICK MANES

Downtown Grand Rapids’ skyline is shown. The Grand Rapids Combined Statistical Area that includes Kent, Ottawa, Muskegon and Allegan counties (KOMA) grew by about 100,000 residents between 2010 and 2020, an increase of about 8 percent. | EXPERIENCE GRAND RAPIDS

Jobs, planning, culture touted as ‘special sauce’ BY RACHEL WATSON

GRAND RAPIDS — As many parts of Michigan saw declining populations between 2010 and 2020, people flocked to greater Grand Rapids for health care, construction and manufacturing jobs. Recent transplants to the west side say the region’s intentional planning and “special” culture is what keeps them around. According to U.S. Census Bureau data, Kent County — home of Corewell Health, Meijer, Steelcase and Amway — saw a 9.2 percent population increase from 2010 to 2020. That’s an increase of over 55,000 people in 10 years and far out-

stripped statewide population growth of 2 percent. Grand Rapids gained about 11,000 of those residents, a growth rate of about 5.8 percent. Meanwhile, every major Kent County suburb grew by at least 3 percent (Sparta) to up to 28 percent (Caledonia). Neighboring Ottawa County, home of Grand Valley State University, MillerKnoll and Gentex, saw a 12.3 percent population spike, or an increase of over 33,000 residents. Muskegon County, which has a sizable manufacturing base including GE Aviation and Bayer CropScience, grew 2.1 percent, adding just over 3,600 residents.

And Allegan County, whose major employers are Perrigo and the Ascension health system, grew 8.2 percent, by about 9,000 residents. In total, the Grand Rapids Combined Statistical Area that includes Kent, Ottawa, Muskegon and Allegan counties or KOMA grew by about 100,000 residents, while in the same decade, other parts of the state languished. Wayne County, Mid-Michigan, The Thumb, parts of Southwest Michigan, and most of the Northern Lower Peninsula save for Grand Traverse County all saw a decade of population losses ranging from 0.2 percent to 8 percent. See POPULATION on Page 25

“WE HAVE A DIVERSIFYING MARKET HERE WHERE WE HAVE DIFFERENT TYPES OF JOBS THAT ARE GROWING, WE HAVE A WIDER GROUP OF JOBS THAT ARE GROWING, AND THAT’S ALLOWING PEOPLE TO MOVE BACK INTO THE AREA.” — Paul Isely, associate dean and economics professor, Seidman College of Business, Grand Valley State University

TRANSPORTATION

QLine ridership bouncing back, but what’s future? Streetcar service remains fare-free BY MINNAH ARSHAD

Detroit’s 5-year-old battery-powered streetcar is bouncing higher after an 18-month pause during the COVID-19 pandemic. The QLine, operated by nonprofit M-1 Rail, reopened late September 2021 after closing in March 2020 due to the COVID-19 pandemic. Average daily ridership was 969 last October through January. It increased to 1,522 riders a day in February-May and June-September was at an average of 2,285 riders per day, according to M-1 Rail’s annual report. In 2019, the QLine delivered about 3,000 trips a day, Crain’s previously reported. Its most recent documented eco-

nomic impact was $8.1 billion from renovations, expansions, retail, restaurants and more across Woodward and beyond, communications officer Dan Lijana told Crain’s. The 12-stop streetcar service travels 3.3 miles each way on Woodward Avenue from Congress Street north to West Grand Boulevard, passing through Downtown, Midtown, the North End and New Center. The first stop is a 7-minute walk from the Detroit-Windsor Tunnel, and the last is a 5-minute walk from the Fisher Building. Current hours of operation are 8 a.m.-midnight Monday-Saturday and 8 a.m.-9 p.m. Sunday. See QLINE on Page 23

QLine resumed service in September 2021 after an 18-month pause due to the COVID-19 pandemic. | QLINE

In a time of rising interest rates, purchase volume stands as perhaps the most important metric for a mortgage lender. That appears to be paying off for United Wholesale Mortgage (NYSE: UWMC) and serving as an Achilles’ heel for rival Rocket Mortgage. Purchase volume — consumers taking on a new mortgage loan to buy a house as opposed to refinancing an existing loan with the goal of obtaining a lower payment — accounted for more than 82 percent of UWM’s business in the third quarter. The Pontiac-based company’s $27.7 billion of purchase volume in the last quarter amounted to the company’s best quarter of mortgage purchase in its history, according to CEO Mat Ishbia. That’s despite UWM’s overall loan production falling nearly 47 percent year- Ishbia over-year. Meanwhile, Detroit-based Rocket Companies Inc. (NYSE: RKT), the parent company of Rocket Mortgage, does not break out purchase versus refinance volume in its earnings reports. However, the company reported closed loan origination volume of $25.6 billion for the third quarter of 2022, a decline of 71 percent year-over-year, and net income declined by more than 90 percent year-over-year for the second consecutive quarter. Refinancing accounted for 82 percent of Rocket’s mortgage volume last year, according to a recent report in the Wall Street Journal, citing data from Inside Mortgage Finance. But rate and term refinances declined more than 90 percent yearover-year from August 2021 to August 2022, according to data from Black Knight Inc. Those metrics account for the current difference between the two companies, according to UWM’s CEO. “That’s the game. It’s a purchase market,” Ishbia told analysts during an earnings call. “I told you guys, when rates go up, we win because we win in purchase. We’re not a one-trick pony dependent on (refinances).” The current rising rate environment has Rocket undertaking something of a reorganization to diversify the company away from being overly dependent on mortgage lending, known for its boomand-bust cycles. See MORTGAGES on Page 22 NOVEMBER 7, 2022 | CRAIN’S DETROIT BUSINESS | 3

REAL ESTATE INSIDER

The Oakland University Student Congress has penned a letter opposing a plan to develop part of the school’s campus. | NIC ANTAYA/

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The Oakland University Student Congress has penned a letter opposing a plan to develop part of the school’s campus at Adams Road and Walton Boulevard Kirk in Rochester Hills. PINHO For years, OU has been on track to develop a chunk of land at the southwest corner of the intersection, engaging in studies and discussions on the matter and looking to other schools — the University of Notre Dame, the University of Connecticut, University of Kansas, for example — for best practices. A proposal could be submitted to the Board of Trustees for consideration in February, the Oakland Post, the student newspaper, reported. There are three national and two local developers who have been weeded out through the request for qualifications process to submit a request for proposals near the end of this month, according to an OU website devoted to the plan. Finalists should be chosen next month. Those developers are: Charleston, S.C.-based Greystar Worldwide LLC; Camden, N.J.-based The Michaels Organization; Chicago-based McCaffery Interests Inc.; Auburn Hills-based Moceri Cos.; and Birmingham-based Robert B. Aikens & Associations LLC. Ultimately, the more than 20 acres could end up has “upscale multifamily housing,” plus retail and hotel space and a performing arts center, depending on how everything shakes out. A 2016 master plan says it could accommodate more than 600,000 square feet of new space. The site includes land that’s part of the sweeping, 1,500-acre Meadow Brook Hall estate, which was donated to the state in 1957 for an Oakland County campus of Michigan State University — now Oakland University. The Tudor-revival style home with 110 rooms across 88,000 square feet cost Matilda Dodge Wilson, a Dodge heiress, and lumber baron Alfred Wilson some $4 million to build between 1926 and 1929. There are about 11 acres of woods plus another 6-plus, and the university says it has emphasized a desire to preserve the woods as part of a proposal, which would involve a developer leasing the land and building on top of some of it. Brailsford & Dunlavey, a consulting firm on public-private partnerships, has been working with the university on market studies, and OU says it has

For years, Oakland University has been on track to develop a chunk of land at the northeast corner, engaging in studies and discussions on the matter and looking to other schools for best practices. | OAKLAND UNIVERSITY

spent $148,000 on the effort so far, as of April. The university adopted a $273.5 million budget this summer, with the overwhelming majority of that coming from student tuition. OU did not respond. But the student government comprised of students paying that tuition has concerns. In a Letter to the Editor to the Oakland Post, the OUSC says the effort “seemingly intends to bulldoze our public lands, lease campus to private entities, and oversee the erection of an upper-upscale ‘boutique hotel.’” “(The East Campus Development) is not for the OU community, it is for ultra rich visitors, and it must be stopped,” the letter says. “Over the course of the last year, students have asked for affordable course materials, a living wage, and sustainable policies and projects, and in response, OU has offered luxury buildings and sustainable platitudes, not actions,” the letter concludes. “OU must invest in community initiatives that will improve (the) campus, not further corporatize and commercialize a non-profit university.” Andrew Romano, the student government president, spoke to me after a class last week. He said the OUSC plans to pass a resolution and present it to the board next month, but the student government has been trying to get the university’s ear for awhile. Sustainability is a key issue. “The problem with the project was, for the longest time, they didn’t really meet with any students,” Romano told me. “They met with residents of the city of Rochester Hills over the summer, they met with faculty this past spring. We’ve been asking them to come to our meeting, and present formally to us

and they finally did on Friday, and that’s when this petition passed unanimously.”

What’s the future of Twitter, Facebook offices here? Social media giants Twitter and Facebook have been in a state of upheaval recently. Now, it’s not entirely clear what the futures of their offices here are. Dan Gilbert’s Bedrock LLC says Twitter, now owned by Elon Musk, is still a tenant. But Bedrock wouldn’t release any other details, instead deferring to Twitter. It was reported a decade ago that Twitter was launching an office in Gilbert’s the Madison Building on Broadway Street downtown, but it’s not known whether Twitter is still in that spot or somewhere else. I emailed Twitter’s main press email account to see if it planned on still maintaining a presence here, given that Musk has promised widespread layoffs, with the Washington Post reporting at least 25 percent of the workforce to be removed. Facebook, on the other hand, has directly said it is shedding office space. And seemingly a lot of it. The Commercial Observer and others reported that its parent company, Meta, said in a third-quarter earnings call that it will spend some $2.9 billion getting out of leases through the end of next year, with $900 million spent this year and $2 billion next. The company has an office in Birmingham’s Triangle District in a building at 735 Forest (which went up for sale a couple years ago but did not trade hands). Contact: kpinho@crain.com; (313) 446-0412; @kirkpinhoCDB

Stage 4 lung cancer, but a new treatment put me back on stage.

Diane’s cancer started in her lungs and spread to her brain. By the time she was diagnosed, her brain tumor was the size of a golf ball. Henry Ford Health experts in lung cancer and brain tumor treatment teamed up to provide Diane with a personalized treatment plan. Now, after emergency brain surgery, chemotherapy and radiation treatment, as well as a biomarker therapy that targeted the gene driving her cancer, this singer and flute player is back to following her passion. Discover Diane’s story, and learn more about lung cancer treatment at henryford.com/lungcancerexperts

Cancer

COMMENTARY

Michigan’s next governor to face economic razor’s edge

EDITORIAL

What do we want from a university president?

ichigan State University’s fractured board came together last week behind an interim president, but not before an extraordinary meeting that was part venting session and part Kumbaya moment. Teresa Woodruff, the university’s provost, will have the formidable task of calming tempers while trustees undertake yet another search for a permanent president following the tumultuous resignation of Samuel Stanley. Woodruff’s resume is impressive, and we hope she can ease tensions and keep MSU moving forward. But her interim appointment also raises an important question: What do we want out of a university president these days? The role is seemTHE ingly self-defining: UNIVERSITIES’ Lead the university, guide its strategy, VALUE TO manage egos, and MICHIGAN’S keep those responsible for a seemingly ECONOMY AND endless number of BUSINESS initiatives and priorities rowing in someCLIMATE IS thing resembling the ENORMOUS. same direction. In 2022, it also includes managing continued responses to controversies like those involving MSU’s Dr. Larry Nassar or UM’s Dr. Robert Anderson that had their roots years before. That requires skills in managing legal issues and public relations — with a human touch that hasn’t always been in evidence. It certainly feels like a harder job than it was when John Hannah led MSU’s transformation from an agricultural college into a massive research university in the 1950s and 1960s.

These questions matter for Michigan. With the changeover at MSU, it is notable that all three of Michigan’s flagship universities will assume new leadership within the space of about a year. Santa Ono is newly arrived at the UM helm and has gotten his first taste of Big Ten football — and Big Ten football controversy with the national fallout following the tunnel attack at the Big House that brought the national spotlight. And at Wayne State University, President M. Roy Wilson plans to retire next July following a tenure that was at times marked by some board members’ efforts to fire him. The universities’ value to Michigan’s economy and business climate is enormous and hard to understate. They research new technologies, spin off new companies and educate high-level talent for industries of the future. The schools’ University Research Corridor pegs the economic impact of those efforts at more than $20 billion a year. We hope that as the MSU and WSU board members are interviewing for their next leaders, they check their personal agendas at the door and prioritize the skills needed to expand efforts to increase ties between business and academia. When the three universities leverage their strengths together, they add up to more for Michigan than the sum of their formidable parts. Finding leaders with the vision to maximize that impact should be job one.

MORE ON WJR ` Crain’s Managing Editor Michael Lee talks about the week’s stories every Monday morning at 6:15 a.m. Mondays on WJR 760 AM’s Paul W. Smith Show.

Write us: Crain’s welcomes responses from readers. Letters should be as brief as possible and may be edited for length or clarity. Send letters to Crain’s Detroit Business, 1155 Gratiot Ave, Detroit, MI 48207, or email crainsdetroit@crain.com. Please include your complete name, city from which you are writing and a phone number for fact-checking purposes. 6 | CRAIN’S DETROIT BUSINESS | NOVEMBER 7, 2022

Dustin

WALSH

Job openings in September rose to 10.7 million, smashing the 9.8 million consensus estimate. But that doesn’t mean the economy isn’t barreling toward hard times. Jobs data is typically a lagging indicator and most of the other crystal balls aren’t pointing to continued bliss. Without the continued stimulus that helped keep bottom lines profitable during the pandemic and rising prices for raw materials and labor, margins are harder and THE TRUTH IS, harder to come by. David Sowerby, THOUGH, THERE managing director DOESN’T APPEAR and portfolio manager for family wealth TO BE ANY advisory firm Ancora, SHORT-TERM FIX is projecting a massive slowdown in COMING FOR profits in the coming RISING COSTS. months. According to his Advance Business Barometer, the 12-month profits forecast will plunge 4 percent this month, the lowest since 1980. Stockholder value will be harder to “grind out” as stock prices continue to decline across the state’s largest companies, Sowerby predicts. General Motors Co. shares are down 37 percent year-to-date. Ford Motor Co. is down 46 percent, and Dow Inc. down 20 percent. And the story is similar in other industries. Poor investment returns are hammering Michigan’s health care sector, which increasingly relies on its portfolio to buoy shrinking margins. See WALSH on Page 23

GETTY IMAGES/ISTOCKPHOTO

DANIEL SAAD/CRAIN’S DETROIT BUSINESS

he U.S. midterm elections are Tuesday. When voters go to the polls on Nov. 8, surging prices will certainly be top of mind. Annual inflation continues to run amok at just over 8 percent, a nearly 40-year high. The cost of groceries, gas and most other mundane costs of daily life are absolutely squashing consumer sentiment. Recent Gallup polling revealed that three-quarters of voters are “very concerned” about the price of food and goods and fourfifths of Americans believe the economy is “very important” to how they’ll vote next week. Republicans point to President Joe Biden’s colossal stimulus in early 2021 for pushing inflation on its historic trajectory. Democrats, particularly Gov. Gretchen Whitmer, have planted their stake in the ground about job creation, largely ignoring the inflation issue. GOP competitor Tudor Dixon has attacked Whitmer on inflation and has pitched cutting personal income taxes and slashing regulations to help. The truth is, though, there doesn’t appear to be any short-term fix coming for rising costs, and what a state governor can do about inflation is limited. The Federal Reserve’s constant rate increases have done almost nothing so far to slow the economy. Through September, consumer debit and credit card spending in Michigan continues to top expectations, up more than 20 percent from February 2020 before the pandemic, according to Harvard University’s Opportunity Insights Economic Tracker. That spending is predominantly driven by a massive spike in consumer entertainment and recreation spending, up 128 percent in Michigan from before the pandemic slowdowns hit the U.S. Michiganders continue to go out and spend, spend, spend on concerts, football games and museums. Last month, I wrote about “labor hoarding” — businesses retaining workers when they’d normally lay off due to the difficulty in hiring workers during the pandemic. And companies are still hiring.

Sound off: Crain’s considers longer opinion pieces from guest writers on issues of interest to business readers. Email ideas to Managing Editor Michael Lee at malee@crain.com.

ENERGY

DTE plan would speed closing of coal-fired power plants BY DAVID EGGERT

DTE Energy has rolled out a plan to start closing the country’s fourth-largest coal-fired power plant 12 years sooner than planned as part of a proposal to dramatically boost the use of renewable energy sources. The Detroit-based utility, Michigan’s biggest, filed an updated integrated resource plan last week that includes retiring the Monroe Power Plant. Two of the four units would be closed in 2028 instead of 2040; the other two would be closed in 2035 rather than 2040. The new plan builds on efforts by Michigan utilities to retire coal-fired plants amid climate change and new government-funded subsidies aimed at combating it. In June, state regulators approved a revised plan by Michigan’s other dominant utility, Jackson-based Consumers Energy, to stop burning coal to generate electricity by the end of 2025. DTE’s Belle River Power Plant in St. Clair County, which also burns coal to produce electricity, would be converted to a 1,300-megawatt natural gas “peaking” plant in 2025 and 2026 — running in periods of high customer demand. DTE had previously planned to stop using coal at the site in 2028. The 2.3 million-customer utility proposed gradually adding 15,400 megawatts of renewables and 1,810 megawatts of battery storage by 2042. That is five times more than existing or approved wind and solar power and more than double the storage currently on its grid. Jerry Norcia, chairman and CEO, called the proposal, which requires regulatory approval, a “balanced and diversified approach” allowing DTE to “achieve new milestones as we transform how we generate electricity.” The company will target an 85 percent reduction in carbon emissions by 2025, 90 percent by 2040. The prior goal was 80 percent by 2040. Electric utilities must file IRPs with the Michigan Public Service Commission every five years, showing how they will provide power to customers over a five-, 10- and 15-year period. DTE last did so in 2019. “We strongly believe that the combination of renewables and storage are going to be a very important piece for resiliency and clean energy going forward on a modern grid,” said Trevor Lauer, president and chief operating officer of DTE Electric. The Monroe plant, which began operating in 1971, provides 30 percent of the utility’s electricity and was the biggest coal-fired plant in the world when it was built. The executives committed to not laying off employees. They pointed to attrition and said they avoided layoffs when previously retiring three other coal plants. DTE wants to add about 1,000 megawatts of solar or wind in the next five years, 5,000 megawatts in years six through 10 and 9,000 megawatts in the years after. Asked about calculus of installing additional wind and solar in a state that is not as windy or sunny as others, Norcia said there are several reasons to put it in Michigan. “First and foremost is having control of the assets in your own states gives you certainty that the assets will be available when you need them and not subject to transmission bottlenecks or other concerns,” he said. “Since we’re a peninsula, it’s very, very important that we have assets

DTE Energy’s Monroe Power Plant. | DTE ENERGY

that produce power in the state. ... No. 2 is really cost. To get that power from the Plains over to Michigan requires massive investments in transmission, which are very expensive. ... As we think about the transition, we wanted to make sure that it was going to be a reliable transition and a cost-effective transition for our customers.” Lauer said manufacturers are innovating and building turbines for lesswindy environments. DTE estimates its generation mix next year will consist of 45 percent coal, 19 percent nuclear, 19 percent natural gas, 14 percent renewables and 3 percent storage. Under its plan, the mix in 2042 would be 62 percent

renewables, 20 percent natural gas and 12 percent nuclear. The utility plans to retire the converted Belle River Plant by 2040. To support the final exit from coal, it also wants to build a 950-megawatt natural gas plant in 2035 that can capture carbon and store it underground, though that could change depending on other technology that is available by the mid-2030s. “We may be one of the first ones if we do it,” Norcia said. “But I think there’ll be many others that will be pursuing this type of technology.” Contact: david.eggert@crain.com; (313) 446-1654; @DavidEggert00

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NOVEMBER 7, 2022 | CRAIN’S DETROIT BUSINESS | 7

BACK TO NORMAL Construction costs expected to increase at closer to usual pace.

REAL ESTATE MARKET REPORT

A home being built in the Lombardo Homes Decora Park North subdivision in New Haven, located in the northern part of Macomb County.

‘IT’S NOT LOOKING TOO HOT’ Metro Detroit home builders lack optimism for 2023 BY ARIELLE KASS

Home builders don’t have many good things to say about where the industry is headed, as interest rates continue to rise and issues with labor availability, materials costs and the supply chain persist. Long waiting lists for new construction are being pared down as rising costs — and the shifting economy — are pricing some people out of the homes they planned to build. “I don’t want to scare anyone, but it’s not looking too hot,” said Vito Castellana, the owner of VIP Homes and Development in Shelby Township. “I joke with all my friends, I’m semi-retired. It’s slow.” Lynne Pratt, the vice president of Construction Education Consulting Services of Michigan and a former builder herself, said she doesn’t like to be the “doom sayer” but what she’s seeing isn’t rosy. “My outlook doesn’t have any8 | CRAIN’S DETROIT BUSINESS | NOVEMBER 7, 2022

thing positive,” she said. “Construction is a really challenging business.” Across metro Detroit, builders are slowing down or shifting to other types of development, including more remodeling work. Castellana said he’s planning multifamily apartments and self-storage; he’s dropping prices and offering concessions on the handful of spec homes he still has in inventory in order to help them sell sooner. Normally, this time of year, builders are scrambling to dig basements and frame houses so they can be prepared for winter, he said. But this year, he isn’t planning to start anything new before it snows. “I haven’t sold a spec home in three or four months,” Castellana said. “I don’t feel keen enough on the market to put a bunch of basements in the ground.” The 260 housing permits pulled in September were the lowest September number since 2011, when

244 permits were pulled, according to data from the Home Builders Association of Southeastern Michigan. Last September, there were 432 permits pulled. Rising interest rates are the biggest factor in the slowdown, the group said.

Multifamily madness At the same time, multifamily permits are having their best year since 1998, with 2,059 new projects in the works in the region. That’s while the trailing 12-month figure for single-family home permits, 3,841, is at its lowest level since January 2013. The fundamentals for the apartment market are “incredibly strong,” said Warren Rose, the CEO of Bloomfield Hills-based luxury property management company Edward Rose and Sons. Year-over-year rent See HOMES on Page 11

New construction permits, by month New construction permits pulled in Wayne, Oakland and Macomb counties had been rebounding since the height of the pandemic but have slowed considerably in recent months. 2,000 1,800 1,600 1,400 1,200 1,000 800 November: 216 permits

600 400 200 0

‘02

‘04

‘06

‘08

‘10

‘12

‘14

DATA FOR OCTOBER 2022-MARCH 2023 IS PREDICTED. SOURCE: HOME BUILDERS ASSOCIATION OF SOUTHEASTERN MICHIGAN

‘16

‘18

‘20

‘22

LAURÉN ABDEL-RAZZAQ / CRAIN’S DETROIT BUSINESS

PAGE 9

FOCUS | REAL ESTATE MARKET REPORT

Commercial building gets a cost reprieve Construction challenges expected to ease BY KIRK PINHO

Construction costs are expected to continue to increase next year and put a crimp on commercial real estate developers, but fall more in line with the yearly increases historically seen. That’s a welcome sign. This comes after unprecedented rises in building costs during the COVID-19 pandemic driven by supply chain woes and labor issues, increased cost of building materials and other factors like the Russia-Ukraine war, which drove up costs of fuel and disrupted shipping, for example. Dallas-based CBRE Inc., the world’s largest commercial real estate firm, says in 2023, costs nationally are expected to increase 4.3 percent, down from the 14.1 percent year-over-year increase seen this year and 11.5 percent in 2021. The increases are also expected to dampen in 2024, at 2.9 percent. Typically the increases range from 2 to 4 percent nationwide, CBRE says, meaning it may be more of a return to normal — at least on the cost side. Some of the material cost spikes

that have been a hallmark of the global health crisis — lumber and steel mills shut down or reduced production, for example, reducing supply and driving up cost as demand for those products remains high — appear to be easing, although costs for some “may remain volatile” as things like tariffs and sanctions play out. However, labor remains a key factor keeping prices rising, albeit at more measured rates — both on site as well as in production facilities, said Chuck Binkowski, COO of Southfield-based contractor Barton Malow Co. “They still can’t get labor, in their shops and in their (fabrication) assemblies and in shipping to be able to hold their costs,” he said. Case in point: The Associated General Contractors of America, a trade organization, says the nonresidential construction workforce nationally was down about 133,700 workers, or about 2.9 percent, in June compared to February 2022 (residential construction, however, was up 179,500 workers, or 6 percent, during that same time period). See COMMERCIAL on Page 10

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NOVEMBER 7, 2022 | CRAIN’S DETROIT BUSINESS | 9

FOCUS | REAL ESTATE MARKET REPORT Commercial real estate construction costs Costs for commercial real estate construction have continued to rise over the last 15 years, with office space representing the biggest increase in cost per square foot. $300 $277 250

200 $174 $145

150

$108 The Hudson’s site tower construction continues at Woodward and State. | KIRK PINHO / CRAIN’S

100

DETROIT BUSINESS

COMMERCIAL

From Page 9

Yet there were 466,000 construction job openings at the end of May, a 39 percent jump year-over-year and the largest number in the 22 years of keeping track of the data, the AGC says. In short: If qualified workers were available, they could be hired, reflecting a long-running concern in the industry about lack of skilled trades following the Great Recession and decades of promoting four-year college degrees over trade schools. “A lot of people didn’t come back” following 2007-08, said Sam Clarke, president of Lansing-based contractor Clark Construction Co. “So that’s a major part of these cost increases.”

Costs continue to rise Locally, cost increases have been

“WHEN WE’RE PLANNING THINGS FOR SOME OF OUR PROJECTS, WE COULD BE A YEAR OUT FOR ELECTRICAL EQUIPMENT.” — Chuck Binkowski, COO, Barton Malow Co.

par for the course for more than a decade. According to Marshall Valuation Service data provided to Crain’s, building new in every asset class has become more expensive: ` Apartments: For a 300-unit highrise building, $143.08 per square foot in November 2008 to $174 per square foot in November 2020, the most recent data available. That’s a 21.6 percent increase. ` Shopping centers: $90.33 per square foot in May 2010 to $145 per square foot in May 2022, a rise of 60.5

Apartments

Shopping centers

Office

Industrial

‘08 ‘10 ‘12 ‘14 ‘16 ‘18 ‘20

‘10 ‘12 ‘14 ‘16 ‘18 ‘20 ‘22

‘07 ‘09 ‘11 ‘13 ‘15 ‘17 ‘19 ‘21

‘12 ‘14 ‘16 ‘18 ‘20 ‘22

SOURCE: MARSHAL VALUATION SERVICE, A NATIONAL COST REFERENCE GUIDE.

percent. ` Office, Class A: $175.11 per square foot in November 2007 to $277 per square foot in November 2021. That’s an increase of 58.2 percent. ` Light industrial: $73.63 per square foot in February 2012 to $108 per square foot in February 2022, an increase of 46.7 percent.

Disruption is the standard Disruption in the supply chain has caused serious delays in getting some materials this year, CBRE says. For example, roofing membranes at one point took 35 to 45 weeks to

Financial challenges? We’re here for you!

Personal or business: FirstMerchants.com/community 10 | CRAIN’S DETROIT BUSINESS | NOVEMBER 7, 2022

arrive, an increase of 800 percent from two years ago, while roofing insulation was up 667 percent at 40 to 50 weeks as of April and May. Drywall and metal studs? Also up 600 percent, at 14 to 16 weeks to arrive. “There aren’t as many suppliers,” Clark said. “There’s like four major drywall suppliers. So when costs go up, there’s not a ton of competition, and that’s true in a lot of areas as far as materials go, but because there is so much demand right now, the price uncertainty is through the roof.” HVAC equipment, took 36 weeks to nearly a year as lockdowns in China reduced output while demand was high with hot weather. Tight manufacturing and shipping labor pools triggered delays for things like wooden doors, hardware and hollow metal door frames. “When we’re planning things for some of our projects, we could be a year out for electrical equipment,” Binkowski said.

High points

likely to continue. CBRE says new industrial and multifamily construction in the U.S. is expected to reach 15-year highs this year, with an estimated 350 million square feet of new industrial space to be completed and more than 400,000 new units built. And in 2023 and 2024, those figures are expected to remain higher than each of the years prior to 2021, clocking in at more than 300 million new square feet of industrial and 300,000 units of multifamily in 2023 and 2024 each, according to CBRE. “There has been no slowdown,” Binkowski said. “From the RFPs we are seeing on major programs, $100 million all the way up to $1 billion, they are still coming out. There’s no lack of RFP opportunity for us, to be sure.” Clark anticipates his company’s biggest revenue year ever in 2023: $600 million, beating out the previous highest at $525 million. “We have unprecedented growth,” Clark said.

But in spite of all that, demand is still strong in two key sectors and is

Contact: kpinho@crain.com; (313) 446-0412; @kirkpinhoCDB

FOCUS | REAL ESTATE MARKET REPORT

HOMES

From Page 8

growth remains in the double digits and occupancy is at 95 percent or higher. Renewals are also high. Rose said increasing home prices are driving new household formations into rental units, which bodes well for that industry. Statewide, Bob Filka, CEO of the Home Builders Association of Michigan, said the figures for new single-family construction are about 10 percent lower than they were a year ago. “There’s definitely a slowdown,” he said. Filka said builders who were used to taking orders will have to start distinguishing their work and selling their abilities. He also said waiting lists had thinned out, with some builders returning deposits of $30,000 to $40,000 for customers who, with rising interest rates, would no longer be able to get approvals for mortgages that would let them build the homes they had contracted for. All of it is making things harder for small builders, said Pratt. When they need money to put into the ground, they need confidence that what they’re building will sell. “Builders are all gamblers,” she said. “The odds are not in your favor.” Traffic in model homes is down, said Scott Schwanke, the area president for M/I Homes of Michigan. He said the drop in interest — he estimated sales are down about 30 percent, though the year isn’t over — happened faster than anything he’s seen in 30 years in the business. “It’s the most rapid shift I’ve seen in my career,” he said. “It tells you we’re in unprecedented times.”

A line of under construction homes in Macomb County’s New Haven. | LAUREN ABDEL-RAZZAQ / CRAIN’S DETROIT BUSINESS

into the same challenges with supply backlogs and said a job that would take 10-12 months will now take 1216. Customers are being asked to make decisions about some ele-

ments, so orders can be made, before projects have even begun. Outdoor spaces, with kitchens and seating areas, continue to be popular, Capaldi said.

Schwanke, with M/I Homes, said how high interest rates will go remains the biggest unknown. Eventually, he said, consumers will get used to the fact that interest rates are high-

er than they had been, and are likely to stay elevated. How those changes affect home prices going forward remains to be seen. He expects builders to take a look at the sizes of the homes they offer, perhaps including things as options that previously would have been standard in order to help bring costs down. Hardwood floors may be replaced with vinyl plank, full brick fronts might be partial brick and cabinets might get a little smaller, he said. “I do think 2023 is going to be a more difficult year than 2022,” Schwanke said. “We’re definitely not going to be as bullish.” Contact: arielle.kass@crain.com; (313) 446-6774; @ArielleKassCDB

TOBOCMAN MASTERPIECE

Challenging costs While the price of lumber has come down, it’s still double what it had been, Schwanke said, and cabinets and appliances can still be hard to find. Other components, like gypsum for drywall, remain challenged. Rino Soave, the CEO of Infinity Homes, said while it normally takes six months to build a house, he’s had new construction take 15 months during the worst of supply chain delays and labor shortages. While those issues have somewhat eased, he said the speed at which interest rates rose were a “complete shock to the system.” “The next four to five months are going to be really telling,” he said. “Obviously, there’s going to be a slowdown for the next year.” But there’s still pent-up demand for housing, Soave said, and so he expects with fewer custom orders he’ll build more spec homes in 2023. Still, the volume will be down. He has about 170 units under construction currently and anticipates the numbers next year will be in the low 100s. He, too, is building multifamily projects. It’s quite a change from last spring, when he had to stop the sales on some communities to keep the backlog from getting too long. Still, Soave said he’s “cautiously optimistic” about the market. One place where there is a bright spot: renovations. Tim Capaldi, the vice president of the Capaldi Building Co., said he’s nearly at capacity for 2023 remodels. Most clients have lived in their homes for some time and are interested in making better use of the space. Still, he’s running

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NOVEMBER 7, 2022 | CRAIN’S DETROIT BUSINESS | 11

EDUCATION

Michigan colleges adapt as ‘glory days’ of prefab MBAs are over Students now looking for specialized programs, flexibility, focus on pressing issues of the day BY MINNAH ARSHAD

As the “glory days” of widespread, generalist master of business administration degrees fizzle out, Michigan universities are finding new ways to attract students across the globe. Brad Killaly, associate dean of fulltime and global MBA programs at the University of Michigan's Ross School of Business in Ann Arbor said generalist MBAs saw its height around the turn of the century. However, students are now looking for specialized programs, flexibility in degree length and format, and focus on the most pressing issues facing entrepreneurs today. At the start of the COVID-19 pandemic, some universities saw a decrease in graduate business program enrollment, which could be attributed to health concerns or deferrals for international students. Fall 2022 data shows a rebound to pre-pandemic numbers for some universities in the region. For others, the slump continues.

Shifting focus While colleges in Michigan have offered numerous options for how to earn an MBA, from fully virtual to in person, the question of why has changed over the last couple of decades. Around 2000, an MBA was typically sought to accelerate a current career path, Killaly said. Now, many people use MBAs to switch careers or have diverse opportunities available post-graduation. “The one thing that is true across time is the return on an MBA is pretty extraordinary,” Killaly said, adding that the full payback period for a Michigan Ross MBA was typically three to six years, depending on a student’s salary going into the program. Michigan Ross ranked 10th in U.S. News & World Report’s 2023 Best Business Schools report. At UM, full-time MBA tuition per year is $68,196 for Michigan residents and $73,196 for out-of-state students. Across Michigan, 31 universities offer a graduate business degree program, according to Crain’s data published in April, with cost per credit ranging from $600-$1,300. Over the years, accrediting bodies and business colleges have shifted focus as the world evolves, said Jeff Stoltman, director of entrepreneurship and innovation programs at Wayne State University’s Mike Ilitch School of Business in Detroit. Business colleges added corporate social responsibility to curricula requirements in the 1970s as a response to changing social tides at the time, and international business courses in the 1980s-2000s to address globalization. Now, entrepreneurs face the onset of another industrial revolution, or Industry 4.0. At the same time, the business world is facing a generational and cultural shift, as Baby Boomers retire and the following generations come in with profoundly different approaches to work, Stoltman said. With the collision of the digital revolution and societal shift, entrepreneurial academics are facing another moment of “soul-searching criticism,” Stoltman said. Wayne State faculty approved

Most of Wayne State University’s MBA students are part time, so the university has worked to offer a variety of schedules to accommodate working students. | WAYNE STATE UNIVERSITY

Killaly

Stoltman

some revisions to the MBA program on Sept. 30, Stoltman said, adding new courses in supply chain and emerging technology issues, which reflect the growth of the digital economy. Killaly said business education leaders have also increased focus on leveraging diversity and attracting students from a variety of backgrounds. The societal and business landscape changes have led Michigan Ross to add more than 20 elective courses over the last few years from classes in equity analytics to artificial intelligence and social venture funds. “(Colleges) will tend to focus on certain industries that, by geographic circumstance or by some other quirk, they’re uniquely suited to serve,” Stoltman said. As a Detroit university, Wayne State has responded to the auto giants by way of building a strong supply chain program. “We have the remnant of a once mammoth industry that still kind of frames our thinking about what our options are,” Stoltman said. Other major urban areas with strong health care systems focus on medical business. A decade ago, one concern in business education was an overemphasis on hard skills and a knowledge gap in soft skills, like management and organizational design. University of Detroit Mercy’s College of Business Administration is prioritizing soft skills in its new master of science and ethical leadership program. It also offers flexibility with an online option, wide array of electives and few prerequisites.

12 | CRAIN’S DETROIT BUSINESS | NOVEMBER 7, 2022

Eisenhauer

Zhang

Attracting students As graduate business enrollment has plateaued since the MBA glory days of the late 1990s and early 2000s, universities have begun offering incentives to attract students to their programs, such as online options, flexible schedules, increased specialization and eliminating admission requirements like standardized tests. At UM, the Ross School of Business offers five formats for its MBA program — full time, weekend, online, executive and global — all suited for different career stages, goals and availability. Over the last few years, Wayne State has offered courses in varying lengths and formats, from four-week classes to weekend classes, and asynchronous, synchronous, hybrid and in-person formats. Most of the MBA students are part time, so the university has worked to offer a variety of schedules to accommodate working students. “I don’t see a world where a faceto-face meeting will never happen, and I think the MBA program needs to prepare future managers and leaders for working with employees and deans and customers and stakeholders face-to-face as well as in a digital environment,” Stoltman said. Michigan Ross now accepts a statement of academic readiness in lieu of a standardized test score, Killaly said, and the school monitors student performance to gauge the necessity of test requirements. Detroit Mercy cut its graduate-level tuition in half just before the pandemic, making it as or more affordable as public universities, Joseph Eisenhauer, dean of the college of

business administration told Crain’s. The MBA tuition this year is about $28,050 at $850 per credit hour with a 33-credit requirement, the dean said, on par with other universities in the region, according to Crain’s data. Enrollment in graduate-level business administration programs at Detroit Mercy spiked in fall 2020 at 148 students before dropping last year to 111 students. Most of the students are enrolled part time. The “historic anchor” of Michigan Ross has been its two-year full-time MBA program, Killaly said. However, the school has increased learning options, even beyond the MBA to meet students where their needs are. Business education is also headed in the way of microcredentials, whereby students select smaller, bite-size sets of learning modules to acquire different combinations of skills, rather than relying on a multiyear curriculum. “The language of business can largely be acquired online, just like any other language,” Stoltman said. However, the thing that sets college programs apart is the interaction with peers and faculty. Killaly said the expansion of microcredentials is supplementary to the growth of degree programs rather than competing, as each program aims to meet the needs of students. “We see it as actually another opportunity,” Killaly said, adding that business enrollment at Michigan Ross hasn’t suffered as a result of increased microcredential options.

Birth rate and international students The number of typical college-age students has declined over the last few years across the nation. “That’s the major external variable, because that’s not going to fluctuate,” Eisenhauer said. The state’s crude birth rate has declined over the last couple of decades from 13.7 births per 1,000 residents in the state in 2000 to 10.4 in 2020, according to the Michigan Department of Community Health.

However, international students continue to play a major role in Michigan MBA programs. At Michigan Ross, Killaly said 36 percent of the full-time program’s incoming class were students from 39 countries, which is generally consistent with previous years. At Central Michigan University, graduate business enrollment numbers have increased every year since 2018. Much of that is from international students, Ling Zhang, director of graduate and international recruitment, told Crain’s. The Mount Pleasant-based university consolidated international processing, recruitment and issuing immigration documents into one office, Zhang said. During the pandemic, the university continued to prioritize international outreach. “We worked really hard and tried to match different time zones,” Zhang said, sometimes holding virtual fairs at 2 a.m. to accommodate potential students across the globe. Fiona Wang, a full-time international MBA student at Central Michigan University, said she joined the program last fall to enhance her technical skills in finance after coming from China for a project management role in Michigan autos. “I want to expand my experience,” Wang said. Central Michigan's MBA program has filled the hard skills knowledge gap to help her move forward in her career, Wang said. “I really enjoyed what I learned and what I can do in the future,” Wang said. The only downfall in the program was the switch to online learning through the COVID-19 pandemic, Wang said, as she was looking for in-person engagement with peers and professors. Currently, Wang said she has a combination of in-person and online classes. International students face higher tuition costs than residents. The difference at CMU is minimal, which charges $726 per credit for residents for its MBA program and master of science in information systems, or MSIS, and $770 per credit for international students, Zhang told Crain's. However, in-state students at Wayne State pay $855.09 per graduate business administration credit, while out-of-state students pay $1,714.14 per credit, according to the university's website.

Economic downturns Enrollment in business graduate programs is typically countercyclical. In the case of a possible recession next year, MBA enrollment numbers are likely to increase as it historically has in economic downturns. “When jobs are plentiful ... people don’t see the need to get new skills,” Eisenhauer said. However, when the economy is down and layoffs are up, people not only have the time to re-enter school, they also need to enhance their skills to be more competitive in the job market. Moving forward, educators will need to continue monitoring the pulse of changing needs in the business community and beyond. “It’s incumbent upon us to respond to the learning needs of individuals,” Killaly said. Contact: minnah.arshad@crain.com @minnaharshad

MONEY MANAGERS They are chief investment officers, lending officers, directors, consultants, partners and principals. They’ve made their clients and companies millions (and far more), saved businesses, negotiated sales and put their clients on the path to prosperity. Meet Crain’s Notable Money Managers, finance professionals whose leadership and know-how keep them on the road to success.

CHRIS BURKE

ALEXIS DISHMAN

JEFFREY FRATARCANGELI

TIMOTHY HA

AARON HODARI

Senior Consultant LoVasco Consulting Group

Chief Lending Officer Michigan Women Forward

Managing Principal Fratarcangeli Wealth Management

Chief Investment Officer First Independence Bank

Chris Burke enjoys advocating for his clients. His responsibilities include managing the retirement programs for 42 forand nonprofit organizations and advising on their $400 million. That includes managing each plan’s investments, monitoring regulatory changes, designing benefits that attract and retain workers and ensuring compliance with fiduciary responsibilities. His biggest win has been helping a client launch a retirement plan as it spun off from a public company and later acquired other companies. “In addition to supporting and elevating our financial wellness initiatives, Chris is truly exceptional in his ability to simplify and communicate complex financial matters to ensure that we meet our fiduciary responsibilities. …The strategies and improvements he has brought to our organization have made a significant impact on the recruitment and retention of our workforce,” said Jackie Hooper, vice president of Human Resources at Easterseals Michigan.

Alexis Dishman is responsible for Michigan Women Forward’s portfolio of $3.6 million in microloans to nearly 200 clients. Since joining the nonprofit two years ago, she increased annual loan volume by 50 percent and hopes to expand the loan fund to support more than 800 clients over the next five years. In fiscal year 2021, Dishman’s team also implemented technical assistance programs that supported 1,400 entrepreneurs. Her biggest career win so far has been successfully sponsoring MWF’s certification as a community development financial institution by the U.S. Treasury Department. “It is difficult to overstate Alexis Dishman’s contribution to our lending ecosystem,” said Paul Jones, director of the business support network office at Invest Detroit. “Ms. Dishman possesses the unique combination of sharp credit analysis competencies and deep understanding of traditionally underserved small businesses allowing her to carry out her mandate of deploying capital in a responsible and intentionally inclusive manner.”

Jeffrey Fratarcangeli leads 23 employees who manage about $3.52 billion for 700 households through Wells Fargo affiliates. His clients range from business owners, executives, corporations and government agencies to celebrities, athletes, and high-networth families. He also collaborates with Big 10 university sports programs to mentor student athletes transitioning into their careers. “He has created an environment that fosters excitement among our team and an innate desire to go above and beyond to provide our clients with the level of service, counsel and accessibility we would expect for our families,” said Fratarcangeli Wealth Management COO Cynthia Mulonas. Fratarcangeli is a guest lecturer at the University of Michigan, where he teaches sports management at the Ross School of Business. He also sits on the boards of directors of the Sean Anderson Foundation, the Mourning Family Foundation, Overtown Youth Center and Broward Health Foundation.

First Independence promoted Timothy Ha to his current position in 2021 from senior vice president of corporate treasury. Since then, the bank has doubled its asset size with a capital infusion. As CIO, Ha is responsible for a more than $100 million investment portfolio and a $380 million deposit portfolio. “He has added a new dimension of experience to our investment team while expanding our ability to reach a broader audience to include large banks and money managers,” said First Independence Chairman and CEO Kenneth Kelly. Ha is active in industry organizations and the community. He’s a member of the Michigan Bankers Association, Detroit Regional Chamber and American Bankers Association. He also sits on the boards of directors of Gleaners Community Food Bank, the Asian Pacific America Chamber of Commerce and the National Association of Asian American Professionals Detroit Chapter.

Chief Investment Officer and Managing Director Schechter

JEFFREY HUEBNER

JEFFREY JOHNSON

ANGELO LESLIE

JOHN LESSER

CHRISTOPHER LETTS

Managing Member, Pointe Capital Management

Managing Director and Partner Blackford Capital

Director of Wealth Management Gries Financial Partners

Jeffrey Huebner helped grow Pointe Capital Management by 30 percent in the last two years. The company advises on $350 million in client assets. Before joining the firm in 2011, he was an executive director at Morgan Stanley in New York. There, Huebner founded and built a team focused on growing the personal wealth of the company’s senior employees. One highlight of his career was when he advised a client that was having trouble selling an illiquid asset. Huebner tapped into his New York network and found a buyer with a sentimental attachment to the client’s asset. “Jeff has been recognized as a notable financial adviser by many organizations (and) the recipient of many awards. Huebner, board treasurer for Goodwill Industries, is also an instrument-rated private pilot and an Aircraft Owners and Pilots Association member.

Jeffrey Johnson leads a team of six investment professionals and is the board chair of two Blackford portfolio companies. The company has “deployed and managed” about $300 million in equity commitments over “the last few years.” “Jeff has been chairman of the board or deeply involved in three exited companies. All three fall within Blackford’s best five exits — as measured by the net MOIC (multiple on invested capital) to our investors — including the single best investment in Blackford’s history,” said Blackford Vice President Andrew Hakim. “The company we are likely to exit next is also a company of which Jeff is chairman.” Under Johnson’s direction, one portfolio company hired its first female CEO and first female CFO, and another hired two female board members.

“Angelo Leslie is a passionate, positive force at Gries Financial. Further, he dedicates his personal time to educating entrepreneurs of all demographics in all things finance,” said Lauren Rich Fine, senior managing director at Gries Financial. Before joining Gries, Leslie was a vice president in the wealth management departments at Comerica and PNC bank. Now he and his team of six oversee a portfolio of more than $25 million. A highlight of Leslie’s career includes co-founding the Women of Color Entrepreneurs Circle, a nonprofit that provides mentorship and financial education to women business owners. Leslie is also a member of the Henry Ford Health System planned giving committee, the James E. Hunter Foundation board and a Crossroads advisory member.

President, Plante Moran Financial Advisors Group Managing Partner, Plante Moran

Senior Vice President and Alternate Investments Director The Pine Harbor Group at Morgan Stanley

Plante Moran promoted Crain’s 40 Under 40 alum John Lesser to its 10-person leadership team as a partner in 2021. He is responsible for $19.83 billion in assets under management. “He helps guide the strategic business direction of our firm with more than 3,500 staff spread out across the U.S. and in Mexico, India, Japan and China. He’s one of the key leaders who shapes the firm’s culture, as evidenced by our 24 years on Fortune’s list of ‘100 Best Companies to Work For,’” said Jim Proppe, managing partner of Plante Moran. “John has been named to the Barron’s Advisor Hall of Fame for having appeared in 10 or more Barron’s annual Top 100 Advisor rankings.” Under Lesser’s direction, Plante Moran Financial Advisors became nationally chartered and added planning and investment advisory resources, including a new mobile app and portal, to clients.

Aaron Hodari works within Schechter’s investment advisory division and as a financial adviser to u l t r a - h i g h - n e tworth clients. Schechter Investment Advisors manages $2.75 billion. Among Hodari’s successes is launching the firm’s Private Capital division, which has grown to more than $350 million under management. “Aaron’s passion for and knowledge of investments and markets has been extremely valuable for our clients and teammates. Aaron digs in and goes deep. His thirst for knowledge and capacity to learn has resulted in Aaron building one of the widest knowledge bases of alternatives and public markets that I have ever seen,” said Schechter CEO Marc Schechter. In addition, Hodari works with leadership to develop and invest in companywide diversity, equity and inclusion-related initiatives. He also provides career advice to high school and college students considering careers in financial services.

“Chris has facilitated this growth by focusing on comprehensive financial planning for entrepreneurs, corporate executives and families of intergenerational wealth,” said Mark Feiler, executive director and branch manager-Bloomfield Hills at Morgan Stanley. Christopher Letts joined the Eli Broad College of Business finance advisory board at Michigan State University in 2019. In this role, he helped create MSU’s master’s degree in Financial Planning and Wealth Management Program. He’s the past president and chair of the Association for Corporate Growth, where he’s still an active board member. Letts also serves on the Winning Futures advisory board and is the past second vice chair of HAVEN.

METHODOLOGY: The leaders featured in this Notable Money Managers report were nominated by their peers. A team of Crain’s Detroit Business editors then selected honorees based on their career accomplishments, track record of success in their field, contributions to their community and mentorship, as outlined in the detailed nomination and candidate forms. Notable Money Managers was managed and written by Leslie D. Green. For questions about this special report, contact Notables Coordinator Ashley Maahs at notablesdetroit@crain.com. NOVEMBER 7, 2022 | CRAIN’S DETROIT BUSINESS | 13

JOSHUA LEVINE

DANA LOCNISKAR

STEPHEN MATUS

LAINA MILLS

Partner and Senior Financial Life Advisor Telemus Capital LLC

Managing Director and Private Wealth Advisor Locniskar Pursel Bucher Biddinger Group of Merrill Private Wealth Management

Senior Vice President and Regional Manager of Investments — Michigan Market Comerica Bank

Senior Vice President and Chief Investment Officer Legacy Trust

As a partner at Telemus, Joshua Levine shares responsibility for about $3.3 billion in assets. He manages about $300 million in assets for 100 client households as an adviser. “He is always doing what is best, whether it’s for his clients, employees and community. Josh is the ideal adviser, manager and partner,” said Matt Ran, chief operating officer, Partner Telemus Capital LLC Levine played an integral role in developing and launching Telemus Insurance Services to provide an inhouse insurance solution for clients. The new line of business is expected to generate $10 million in revenue over the next five years. Levine also added an employer retirement plan solution for business-owner clients and Virtual Family CFO and Corporate Executive Services business lines. In addition, Levine oversees a $40 million endowment as chair of Temple Israel’s investment committee. He’s also a member of the board of governors for the United Jewish Foundation of Metropolitan Detroit and Hillel Day School board president.

In his 52 years with the company, Dana Locniskar has celebrated 40 consecutive years as one of Merrill’s top 100 advisers. His firm employs four private wealth advisers and three wealth management advisers and manages $4.3 billion. Locniskar manages $1.8 billion of those funds. His biggest career win has been building a multi-generational team of advisers aged 26 to 77. Forty percent are female, and 10 percent are African American. “Dana is an institution at Merrill. He has set the bar for what it means to build an intensely client-focused practice that continues to grow and is positioned to thrive for generations to come,” said Andy Sieg, president of Merrill Wealth Management Bank of America. Locniskar serves on the boards of the Community Foundation for Southeast Michigan, City Year Detroit and Teach for America Detroit. He is a trustee emeritus of Detroit Public Television and the Futures Foundation. He also serves the Detroit Institute of Arts and United Way of Michigan.

Comerica Bank promoted Stephen Matus to his current role in June 2022, giving him oversight of $5.4 billion in assets under management in the Michigan Market. “Steve Matus has more than 25 years in the investment industry, assisting high-networth families and their related interests. Steve’s passion, knowledge and genuine interest in achieving the best for clients are noticeable to those who work with him,” said Denise Calisi, senior vice president and regional managing director of private wealth management for Comerica. Matus earned chartered financial analyst status in 2016 and is a member of the CFA Institute and CFA Society of Detroit. He considers being entrusted with the training, coaching and leadership of the bank’s Michigan Market investment team a highlight of his career.

Laina Mills received four promotions since joining Legacy Trust as an investment associate in 2009. As CIO, she is responsible for the firm’s total book of about $1 billion in assets under management for more than 800 individuals and families. Her direct portfolio is about $400 million of private wealth assets. In 2021, the American Bankers Association named Mills to its national class of 40 Under 40 members for her work in wealth management. “Her skills as a member of the bank’s leadership team go far beyond her responsibility of driving the strategic direction of the company. Since Laina took on this role, Legacy Trust has seen growth in financial performance, client service and a thriving culture of inclusion and engagement,” said Legacy Trust CEO Tracey Hornbeck. Mills serves on the Grand Rapids Community Foundation, St. Cecilia Music Center and Grand Rapids Symphony Foundation’s investment committees, is vice chair of the boards of the Grand Rapids Downtown Market and Opera Grand Rapids and a board director for the Frederick Meijer Gardens and Sculpture Park.

KAREN MINGHINEHAGENIAN Executive Vice President and Director of Retail Banking — Midwest Citizens Financial Group

Karen Minghine-Hagenian is responsible for retail branches in Michigan and Ohio, which includes a 156-branch network and 900 employees. Citizens has about $226.7 billion in assets. Her biggest career wins include reducing expenses and increasing efficiencies throughout the bank. Minghine-Hagenian embraces Citizens’ diversity, equity and inclusion strategy as an active member of several Citizens’ employee resource groups, including Awake-Disabilities, WIN-Women, PRIDE-LGBT and Prism-Multi Cultural. She also steps up to mentor colleagues. “Karen has not only helped people advance their careers in her Midwest market, but she has helped groom many senior leaders in the bank. Karen has been instrumental in helping support peers that are new to the role and/or those looking for ways to elevate their market’s performance, gaining her recognition from our executive leaders on multiple occasions,” said Cathy Fisher, business banking director and senior vice president at Citizens.

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Your passion to learn, your continuous desire to identify tailored investments, and your commitment to our best-in-class client experience continue to be key catalysts to Schechter’s remarkable growth. Your national recognition as an authority on alternative investments has helped our investment advisory practice surpass $2.5 Billion* of managed assets. Thank you for giving so much of yourself to our clients and to our team.

Aaron Hodari, CFP ®, CIMA ® Managing Director | Chief Investment Officer

14 | CRAIN’S DETROIT BUSINESS | NOVEMBER 7, 2022

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HUGHEY NEWSOME

JOHN NORI

THOMAS OEHMLER

DAVID SOWERBY

JASON TINSLEY

CFO Wayne County

Managing Director UHY Wealth Management

Before joining Wayne County three years ago, Hughey Newsome managed Flint’s $188 million budget and Pontiac’s $77 million budget. Now Newsome is responsible for more than 90 employees and a budget of $1.67 billion, and capital assets of $1.4 billion. He also oversees investment in information technology, debt issuance and procurement. His career highlights include providing financial oversight over the $67 million refinancing of the Karegnondi Water Authority debt so Flint could get a long-term water provision contract with the Great Lakes Water Authority. In 2020, he was integral to the county successfully refunding $245 million in debt originally issued for the abandoned jail project. “Under the leadership of Hughey Newsome, the county has seen credit rating improvements year over year,” said Wafa Dinaro, executive director of the Community Foundation for Southeast Michigan. “Hughey is working to … modernize the county’s financial and accounting systems, as there is a dire need to make such changes in order to allow the county to have staffing and financial flexibility along with improved transparency into its financial position.” Newsome serves on the finance committee of the Green Leadership Trust, based in Washington, D.C., which promotes diversity on the boards of environmental nonprofits.

John Nori has been a financial adviser with Morgan Stanley Dean Witter and Merrill Lynch. In 2005, he founded Midwest Financial Advisors, which offers securities through SagePoint Financial. In 2019, he helped create and launch UHY Wealth Management to provide clients with a high level of service and communication with a newer-hybrid alternative approach to investment. Nori is a chartered retirement planning counselor and specialist and an accredited investment fiduciary. He manages more than $400 million in assets. He also leads an Office of Supervisory Jurisdiction group of advisers. A past member of the McLaren Foundation Board of Directors, Nori supports the Parade Company’s Turkey Trot, the Clinton River Watershed, the Multiple Sclerosis Foundation and Gleaner’s hunger food drive.

Executive Vice President, Comerica Bank President, Comerica Trust

Managing Partner and Portfolio Manager Ancora

Managing Director and Market Manager JPMorgan Private Bank

Thomas Oehmler is responsible for about 350 trust, investment and operational employees in 50 states, along with $200 billion in assets under management. Highlights of his career include growing Comerica Trust, growing revenue and adding solutions-based fiduciary services. Products and services offered to private wealth clients now include a donor-advised fund, general philanthropic capabilities, estate settlement and a special needs trust. “Under (Tom’s) leadership, the fiduciary business has made key acquisitions and strategic hires that have strengthened Comerica’s capability and client deliverables. The Comerica Advisor Solutions business, specifically, has experienced historically unprecedented growth and is recognized as the best in the industry. “Additionally, Tom and his team have led, and are executing on, efficiency and technology solutions to enhance the client experience and position the business for even better performance in the future,” said Greg Carr, executive vice president and executive director of Wealth Management at Comerica Bank. Oehmler also is a mentor through Comerica’s Emerging Leaders program.

David Sowerby serves on Ancora’s executive committee and is co-portfolio manager for the company’s $500 million large-cap value strategy, which includes a 4-star Morningstar Analyst-rated mutual fund. Since joining the firm five years ago, he’s helped grow the Bloomfield office to $2 billion in assets managed. He serves on the city of Detroit pension investment committee and the Michigan Chamber of Commerce board. Sowerby was in Crain’s original 40 Under 40 class in 1990. Before joining Ancora, Sowerby was a portfolio manager at Loomis, Sayles & Co., a senior portfolio manager for Beacon Investment Management Company and an economist for Comerica Bank. He frequently contributes to CNBC, Bloomberg TV and radio and PBS Wall Street.

Jason Tinsley oversees $12 billion in assets under management. “Working in Detroit with Jason for 12-plus years, I’ve had the opportunity to witness him be a best-in-class partner to teams and individuals across the firm and put those same qualities into practice as an ambassador in our communities,” said Terrah Opferman, managing director and region manager — Michigan Middle Market Banking at JPMorgan Chase Commercial Banking. Tinsley’s biggest career wins include reaching his current position. In this role, he mentors junior bankers, leads a team of about 40 employees and implements and co-manages the Private Bank’s national Diverse Wealth initiatives. The position also allows him to be a champion for diversity, equity and inclusion through the company’s Black Wealth Initiative, which Tinsley launched. Additionally, Tinsley sits on numerous boards, including the Beaumont Health Foundation, Detroit Children’s Fund, TechTown Detroit, Detroit Institute of Arts and Detroit Economic Club.

MONISH VERMA

DIANE YOUNG

Founder and Managing Partner, Vardhan Wealth Management

Managing Partner Arrowroot Family Office

Monish Verma has nearly 30 years in the wealth management business. Monish Verma worked as senior vice president of wealth management and senior portfolio manager for UBS and at Smith Barney Morgan Stanley before launching Summit Financial LLC dba Vardhan Wealth Management in May 2021. As head of Vardhan, he leads four people in Michigan and 160 people in New Jersey who provide financial planning and wealth accumulation counseling along with planning, risk reduction, credit and lending solutions to business owners. They manage more than $375 million. In 2020, Forbes named Verma as one of the top advisers in the state. He is a past president and an active member of the Indo American Chamber of Commerce.

Diane Young was the founder and president of Athena Financial Group, which she ran for 17 years before merging with Los Angeles-based Arrowroot in 2021. It was one of the first mergers from TD Ameritrade’s RIA-connect program. Now, she directly manages about $75 million in client assets and co-manages $225 million in company assets under management. “Diane helped the Girl Scouts of Southeastern Michigan create a well-balanced portfolio and investment strategy and helped us develop a sound investment policy statement. In addition, she helped shepherd the organization as it closed down a defined benefit plan and ensured all former employees were paid what they were owed. She has a no-drama management style that was really helpful,” said Denise Dalrymple, former CEO of Girl Scouts of Southeastern Michigan. Moreover, Young is active in the community. She sits on the boards of the Financial Planning Association of Michigan, Citizens Research Council of Michigan and Warren Symphony Orchestra and is a trustee for the Warren Sterling Heights Democratic Club. NOVEMBER 7, 2022 | CRAIN’S DETROIT BUSINESS | 15

MEDIA

West Oakland County newsweekly shuttering After more than six decades, The Spinal Column ceasing operations BY KIRK PINHO

Western Oakland County newspaper The Spinal Column Newsweekly says it is ceasing operations after more than six decades of publication and going up for sale. Jim Stevenson, publisher and owner of the community staple since 2015, said in an interview that advertising revenue plunged during the COVID-19 pandemic, the cost of newsprint has gone up 50 percent and the price of postage has also increased, causing it to become unprofitable. “When I Stevenson looked at all of those things, it just didn’t make sense,” he said of the approximately 13,000-circulation free print publication. Revenue fell from $1.1 million in 2019 to $790,000 in 2020 and $830,000 in 2021. He said the company lost $110,000 in 2020. A staff of 14 full- and part-time employees will be reduced to just three as monthly sister publication, Lakefront Living, which is mailed to about 16,000 homeowners on Oak-

Western Oakland County newspaper The Spinal Column Newsweekly says it is ceasing operations after more than six decades of publication and going up for sale.

land County’s more than 200 lakes, remains in operation. Some local coverage, such as election stories and high school football, will continue for a couple more weeks online, but Stevenson

said he doesn’t expect any more stories under his ownership after Thanksgiving. Both the Spinal Column and Lakefront Living are for sale, Stevenson said.

THOUGHT LEADERSHIP FORUM

“Maybe somebody else has a better business model,” he said. “Maybe someone is thinking of a better way to do it than I am now.” Its former parent company, Oakland Communications Inc., filed for Chapter 7 bankruptcy in October 2012 and was sold to Lewis County Press LLC, an entity run by Chicago-based venture capitalists Philip Calian and Robert Moulton-Ely. Bankruptcy court filings from the time say the purchase price was $215,000. Calian and Moulton-Ely then laid off most of the publication’s staff, moved it out of its longtime owned building on Cooley Lake Road in Waterford Township and leased smaller space on South Milford Road in Highland Township. Stevenson, who joined ownership in March 2013 and took a 34 percent equity stake, said he bought out Calian and Moulton-Ely in 2015. It’s a tough blow for the west Oakland community, sometimes referred to as the lakes area, Stevenson said. “One of my advertisers told me yesterday, ‘Our community has lost part of its soul with the Spinal Column leaving,’” Stevenson said. Contact: kpinho@crain.com; (313) 446-0412; @kirkpinhoCDB

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DEALS&DETAILS ` EXPANSIONS ` Infusion Associates, Grand Rapids, Iowa, providers of medically prescribed outpatient infusion and injection therapies, opened a location at 39475 Lewis Drive, Suite 140. Novi, its 11th Michigan location. The 2,350-square-foot clinic has 11 infusion chairs and private rooms. Phone: (833) 394-0600. Website: infusionassociates.com/office-locations/novi-mi ` Athletico Physical Therapy, Oak Brook, Ill., an orthopedic rehabilitation chain, has opened a new location at 655 Kenmoor Ave. SE, Suite 103, Grand Rapids. Phone: (616) 3150100. Website: athletico.com/GrandRapidsForestHills

` MERGERS & ACQUISITIONS ` Epika Fleet Services Inc., Bloomington, Minn., a network of mobile and in-shop preventative maintenance service centers serving commercial fleets, acquired Fleet Mobile Maintenance Inc., Lapeer, provider of mobile preventative maintenance and mechanical repair, tire replacement and repair services, and trailer repair and maintenance services. Fleet Mobile Maintenance serves Detroit, Ann Arbor, Battle Creek, Lansing, and Flint. FMM also has technicians serving customers in Indianapolis, Cleveland, Louisville, and Nashville. Websites: epikafleet.com, fleetmobilemaintenance.com

NONPROFITS

Adolescent addiction recovery site opens in Troy Outpatient substance abuse treatment site to accept those with and without insurance BY SHERRI WELCH

Children’s Foundation and Children’s Hospital of Michigan physicians group University Pediatricians have teamed up to open an outpatient substance abuse treatment site for adolescents. The Adolescent Addiction Recovery Center opened in late October at Children’s Hospital of Michigan-Troy in donated space on the second floor to provide counseling for youth age 1318 who are suffering from addictions to alcohol or drugs. The center has more than $1.5 million in commitments from the Children’s Foundation and Delta Dental of Michigan. The center is already seeing referrals and a lot of calls from as far away as Hurley Medical Center in Flint, as news of its opening spreads word-ofmouth, said Mark Harrison, chief administrative officer and chief operations officer of University Pediatricians, which is operating the center. He expects the center to get referrals from parents, pediatricians, school systems and emergency departments in the region. Substance use disorders continue to plague our society and the kids of the region, he said. “We’re taking a different approach

Children’s Hospital of Michigan

in that we’re providing treatment to anyone, regardless of their ability to pay,” with backing from local funders, Harrison said. Children’s Foundation covered the $150,000 in costs to convert the space from a clinical area to counseling and office space and rounded up about $500,000 in annual funding for the next three years. That support includes a one-year grant from Delta Dental of Michigan and three-year commitments from its own endowment and two funds under its umbrella: the Jamie Daniels Foundation and Georgie Ginopolis Endowed fund. “The need is so great: kids are dying every day because of this problem. We’re helping solve it or at least save

lives,” said Larry Burns, president and CEO of the Children’s Foundation. Dr. Matt LaCasse, a child and adolescent psychiatrist specializing in addiction and the lead psychiatrist at Children’s Hospital of Michigan, will serve as director of the new center. Local interest in launching a clinic dedicated to adolescent substance use brought him back to Michigan from Colorado last year. “Like most areas in the country, there is an enormous need for adolescent substance use services here in Metro Detroit and Michigan,” said LaCasse. But few places in Michigan treat adolescent addiction, and many that do are off-shoots of adult programs. They might provide psychotherapy but

struggle with more severe cases when an adolescent psychiatrist or addiction psychiatrist is needed, he said. The new, Troy clinic is modeled after other adolescent recovery centers around the country, taking some of the best things from each, he said. An old saying in the addiction world is, ‘The opposite of addiction is connection,’ said LaCasse, who is also an assistant professor in the Central Michigan University College of Medicine. “Addiction is often a very isolating disease. Even when using with other people, as adolescents and young adults often do, the result is isolation.” The clinic’s psychotherapy will focus on empowering youth to make actions that bring them closer to their values and the things they care about and to building connectedness with themselves, their families and those around them, LaCasse said. The clinic will also provide treatment for psychiatric issues that often accompany substance use, like anxiety and depression. The clinic is not set up for in-patient detox treatment, but patients (especially those struggling with fentanyl and other opioid addictions) will have access to life-saving medications, and the center will work closely with clients and families to support detox and make referrals to in-patient treatment

Burns

LaCasse

sites when needed, he said. “In the future we plan to continue to expand our reach by getting involved in schools and elsewhere; along with building our programming and building higher levels of care such as a residential program here in Michigan.” Funding from the foundations will help cover the costs of staff, including two therapists and an office manager, and provide a pot of money for uncompensated care. If further operating support is needed beyond year three, the foundation will find it, Burns said. “I’m very confident that we can raise additional funds from additional resources — families, individuals, foundations — because the problem is so broad, and something needs to be done.” Contact: swelch@crain.com; (313) 446-1694; @SherriWelch

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CRAIN'S LIST | NONRESIDENTIAL PROPERTY MANAGERS Ranked by square feet under management in metro Detroit

COMPANY NAME LOCATION CONTACT INFO

TOP LOCAL EXECUTIVE(S)

TOTAL SQUARE FEET NONRESIDENTIAL PROPERTIES UNDER MANAGEMENT INSIDE METRO DETROIT OCT. 2022

TOTAL SQUARE FEET NONRESIDENTIAL PROPERTIES UNDER MANAGEMENT OUTSIDE METRO DETROIT OCT. 2022

TOTAL SQUARE FOOTAGE NONRESIDENTIAL PROPERTIES UNDER MANAGEMENT OCT. 2022

MAJOR PROPERTIES UNDER MANAGEMENT 2022

JONES LANG LASALLE AMERICAS INC. (JLL INC.)

John Cullen EVP

41,500,000

35,000,000

76,500,000

ASHLEY CAPITAL LLC

Susan Harvey senior vice president

20,480,000

1,716,000

22,196,000

Means Logistics Park, Brownstown Business Center, Livonia Corporate Center

BEDROCK

Kofi Bonner, CEO; Ivy Greaner, COO

19,300,000

1,900,000

21,200,000

NEWMARK

Jerry Burgess vice president

17,204,000

7,240,000

24,444,000

Pinehurst Office Center, Travelers Towers, PNC Center, Amazon Distribution Center, United Jewish Federation Portfolio

FARBMAN GROUP/NAI FARBMAN

Andrew Farbman, CEO; Andrew Gutman, president; Michael Kalil, COO; Chris Chesney, CFO

17,000,000

13,000,000

30,000,000

New Center One, Cambridge Court, 27777 Inkster, Bingham Office Center, 25 Northwest Pointe, Oakland Commons, Sheffield Office Park, 100 N. LaSalle, 600 W. Jackson

FRIEDMAN REAL ESTATE

David Friedman co-founder, executive managing director, president & CEO

9,265,664

7,406,703

16,672,367

Galleria Officentre, Southfield, MI - 4 Buildings - 1,011,202 SF; North Troy Corporate Park, Troy, MI - 5 Buildings 763,806 SF; West 11 Corporate Campus, Southfield, MI - 4 Buildings - 715,542 SF; Faison Building, Milwaukee, WI - 1Building 435,557 SF; Palmer House Retail, Chicago, IL 1 Building - 68,348 SF; Lincolnwood Town Center, Lincolnwood, IL - 1 Building - 422,587 SF; Honeywell Building, Houston, TX - 1 Building - 156,784 SF

SIGNATURE ASSOCIATES

Steve Gordon, president; John Hamburger, SVP; Mark Woods, COO; Tom Giguere, director of property management

8,070,000

1,310,000

9,380,000

UnaSource Healthcare Portfolio, Consolidated Equities Industrial Portfolio, Arbor Bay Capital Portfolio, Avis Farms Industrial Portfolio, Lyon Towne Center

CBRE INC.

Paul Van Devender, managing director Michigan market leader; John Brien and Sean Gearhart directors

7,234,890

7,100,000,000

7,107,234,890

Renaissance Center, Novi Town Center; 888 Big Beaver, Troy; 900 & 1050 Wilshire, Troy

REDICO

Dale Watchowski, CEO, COO and president; Paul Stodulski, CFO

6,376,967

1,625,213

8,002,180

150 West Jefferson, American Center, One Kennedy Square, Oakland Towne Square

PROPERTY SERVICES GROUP INC.

Daniel Politi, vice president; Robert Stillings III, president

3,959,154

51,177

4,010,331

LIBERTY PROPERTY & ASSET MANAGEMENT 1

Al Shulin, president; Mason Capitani managing partner; Jason Capitani, managing partner

3,500,000

2701 & 2601 Cambridge Court, Auburn Hills; 901 Wilshire Drive, Troy; 37101 Corporate Drive, Farmington Hills; 40950 Woodward Ave., Bloomfield Hills; 5440 Corporate Drive, Troy; 6770 Dixie Highway, Clarkston; 31275 Corporate Drive, Farmington Hills; 30665 Northwestern Highway, Farmington Hills; 31275 Northwestern Highway, Farmington Hills; 32300 Northwestern Highway, Farmington Hills; 17900 23 Mile Road, Macomb Twp.

KIRCO MANAGEMENT SERVICES LLC

A. Mathew Kiriluk president

3,057,912

1,384,505

4,442,417

Columbia Center, Baldwin Commons Shopping Mall, Shelby Creek Shopping Mall, West Bloomfield Medical Center, Ascension Rochester Medical Building, Henry Ford Medical Pavilion, Level One Bank HQ and branches, Oxford Bank HQ and branches, etc.

OXFORD COMPANIES

Jeff Hauptman CEO

2,712,454

777 E. Eisenhower Parkway, Burlington Office Center, Concord Center

POGODA MANAGEMENT CO.

Maurice Pogoda chairman and founder

2,350,000

1,625,000

3,975,000

National Storage Centers

BOJI GROUP

Ron Boji, president; John Hindo, VP and general counsel

1,387,860

1,447,699

2,835,559

Binsfeld Building, Lansing; Boji Tower, Lansing; The Louie, Lansing; Henry Ford Health, Royal Oak

COLLIERS DETROIT

Paul Choukourian executive managing director

1,218,362

10,066,174

11,284,536

Wayne State University, Spirit Realty, Centerpointe Mall, Zeal Credit Union, Northpointe Bank, Booking.com building, Global Medical REIT

HAYMAN COMPANY

Andrew Hayman president

1,020,000

950,000

1,970,000

PentaCentre, Troy; Oakland Office Center, Birmingham; Chicago 9 Portfolio, Illinois

226 E. Hudson, Suite 200, Royal Oak 48067 248-581-3300; jll.com

2575 S. Haggerty Road, Suite 500, Canton Township 48188 734-394-1900; ashleycapital.com

630 Woodward Ave., Detroit 48226 888-300-9833; bedrockdetroit.com

27725 Stansbury Blvd., Suite 300, Farmington Hills 48334 248-350-9500; ngkf.com

28400 Northwestern Highway, Fourth Floor, Southfield 48034 248-353-0500; farbman.com

34975 W. 12 Mile Road, Farmington Hills 48331 248.324.2000; friedmanrealestate.com

One Towne Square, Suite 1200, Southfield 48076 248-948-9000; signatureassociates.com

2000 Town Center, Suite 2200, Southfield 48075 248-353-5400; cbre.com

One Towne Square, Suite 1600, Southfield 48076 248-827-1700; redico.com

550 Stephenson Highway; Suite 450, Troy 48083 248-637-9800; propserv.com

1111 W. Long Lake Road, Suite 350, Troy 48098 248-273-4200; libertypropertymgmt.com

101 W. Big Beaver Road, Suite 200, Troy 48084 248-680-7180; kirco.com

777 E. Eisenhower Parkway, Suite 850, Ann Arbor 48108 734-747-6000; oxfordcompanies.com

32300 Northwestern Highway, Suite 110, Farmington Hills 48334 248-855-9676; pogodaco.com

132 N Old Woodward Ave, Birmingham 48009 517-377-3000; bojigroup.com

2 Corporate Drive, Suite 300, Southfield 48076 248 540 1000; colliers.com/detroit

29100 Northwestern Highway, Suite 410, Southfield 48034 248-879-7777; haymancompany.com

Researched by Sonya D. Hill: shill@crain.com | A property manager oversees all financial, administrative, contractual, maintenance and daily operations for the interior and exterior of properties. This list is an approximate compilation of the largest such companies in Wayne, Oakland, Macomb, Washtenaw and Livingston counties. Companies with headquarters in the Detroit area are listed with their total property under management. Companies outside the area are ranked by property managed by their Detroit offices only. Nemer Property Group Inc. which was No. 15 on last year's list and Ford Motor Land Development Corp. which was No. 17 on last year's list, did not submit data before publication. This is not a complete list but the most comprehensive available. Unless otherwise noted, information was provided by the companies. NA = not available. NOTES: 1. The property management arm of L. Mason Capitani Corfac International.

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18 | CRAIN’S DETROIT BUSINESS | NOVEMBER 7, 2022

CRAIN'S LIST | MICHIGAN VETERAN-OWNED BUSINESSES Ranked by 2021 revenue COMPANY NAME LOCATION CONTACT INFO

MAJORITY OWNER(S)

REVENUE ($000,000) 2021/2020

PERCENT CHANGE

LOCAL EMPLOYEES JAN. 2022/2021

PERCENT VETERANOWNED

BRANCH OF SERVICE

YEARS SERVED

TYPE OF BUSINESS

WOLVERINE PACKING CO.

Jim Bonahoom president

$1,499.0

16.1%

NA 750

50.0%

Army

Wholesale meat packer and processor; wholesale meat, poultry and seafood distributor

POPULUS GROUP

Bobby Herrera CEO

$621.7

7.7%

174 140

51.0%

Army

HR services/staffing

BARRICK ENTERPRISES INC.

Robert Barrick president

$500.7

56.6%

10 16

100.0%

Army

Petroleum retailer and wholesaler

PETOSKEY PLASTICS INC.

Paul Keiswetter chairman and CEO

$182.9

12.2%

9 10

80.0%

Marines 4

Recycler and plastic film, bag, and resin manufacturer

CHEMICO LLC

Leon Richardson CEO, chairman, president

$165.2

4.5%

93 89

100.0%

Marines 7

Chemical management and supply

LOAD ONE TRANSPORTATION & LOGISTICS

John Elliott CEO

$148.0

25.4%

578 586

75.0%

Army

Transportation and logistics solutions

MIDWEST STEEL INC.

Gary Broad CEO

$138.0

2.2%

500 110

95.1%

Army

Structural steel contractors

AVIS FORD INC.

Walter E. Douglas Sr. chairman

$137.1

21.4%

120 119

24.0%

Army

Automobile dealership

JAMES GROUP

John A. James chairman; Lorron James CEO; John E. James president; Keri James head of John A. James Foundation

$127.4 e

8.9%

273 260

50.0%

Army

Logistics and supply chain solutions

MJC COMPANIES

Michael Chirco founder and president

$120.9

28.5%

72 62

100.0%

Army

Real estate building, development and sales

MCL JASCO INC.

Louis James president and CEO

$119.2

31.7%

168 167

100.0%

Army

Engineering services, program management in energy/sustainability and automotive support and leadership. Clients include automotive OEM's, utilities, and governmental entities

BULLSEYE TELECOM INC.

William Oberlin Chairman

$102.4 e

3.7%

NA NA

60.0%

Army

Telecommunications

ARROW STRATEGIES LLC

Jeffrey Styers CEO

$80.2

35.9%

391 1062

100.0%

Marines 1

Staffing services

MULTI-BANK SECURITIES INC.

David Maccagnone chairman and CEO

$77.8

-33.8%

58 60

54.9%

Marines 10

Institutional investment broker-dealer

HOSLER MECHANICAL INC. (DBA PROGRESSIVE MECHANICAL INC.)

Randy Hosler president

$74.5

-45.6%

150 125

51.0%

Army

Mechanical contractor

TRILLAMED LLC

Frank Campanaro CEO

$74.5 e

8.9%

NA NA

91.0%

Army

Distributor of medical, facility and new construction products

COMMONEO LLC

Robert Jones CEO and Service Disabled Veteran managing member

$35.6 e

4.9%

NA NA

Air Force

Payroll service

NORTHERN WINGS REPAIR INC.

David Goudreau president

$33.9 e

2.6%

NA NA

Marines NA

Aerospace manufacturer and distributor

CMAC TRANSPORTATION LLC

David Christie CEO

$31.5

18.9%

275 NA

52.0%

Air Force

Logistics company

ONSTAFF USA INC.

Patrick Allkins CEO

$28.9 e

15.7%

NA NA

Navy

Recruiting, consulting and testing firm

ELLIOTT TAPE INC.

Richard Elliott president and CEO

$27.5 e

6.6%

NA NA

Army

Automotive tape supplier

IMPERIUM LOGISTICS LLC

A. Rocky Raczkowski president and founder

$27.5 e

NA NA

100.0%

Army

Logistics, distribution and supply chain services

CONTRACT PROFESSIONALS INC. (CPI)

Steven York chairman and CEO

$26.8

NA 426

78.0%

Air Force

Staffing company

ALDEZ NORTH AMERICA

Jeffrey Copek president

$25.4

10.6%

17 20

100.0%

Army

Supplier of manufacturing support services

AUTOMATION & MODULAR COMPONENTS INC.

Richard Shore chairman of board

$22.3

24.1%

94 90

70.0%

Navy

Manufacturing - material handling, automation systems, conveyors, test equipment and aluminum extruded products

2535 Rivard, Detroit 48207 313-259-7500; wolverinepacking.com 3001 West Big Beaver Road, Ste. 400, Troy 48083 248-712-7900; populusgroup.com 4338 Delemere Blvd., Royal Oak 48073 248-549-3737; barrickent.com 1 Petoskey St., Petoskey 49770 231-347-2602; www.petoskeyplastics.com 25200 Telegraph, Suite 120, Southfield 48033 248-723-3263; thechemicogroup.com 13221 Inkster, Taylor 48180 734-947-9440; load1.com

2525 E. Grand Blvd., Detroit 48211 313-873-2220; midweststeel.com 29200 Telegraph Road, Southfield 48034 248-355-7500; avisford.com 4335 W. Fort St., Detroit 48209 313-841-0070; jamesgroupintl.com

46600 Romeo Plank Road, Suite 5, Macomb 48044 586-263-1203; mjccompanies.com 7140 W. Fort St., Detroit 48209 313-841-5000; mcljasco.com 25925 Telegraph Road, Suite 210, Southfield 48033 248-784-2500; bullseyetelecom.com 27777 Franklin Road, Suite 1200, Southfield 48034 248-502-2500; arrowstrategies.com 1000 Town Center, Suite 2300, Southfield 48075 800-967-9045; mbssecurities.com

1080 N. Crooks Rd., Clawson 48017 248-399-4200; progressivemech.com

30100 Telegraph, Suite 366, Bingham Farms 48025 248-433-0582; trillamed.com 50170 Schoenherr Road, Utica 48315 248-413-0190; commoneo.net 6679 County Road 392, Newberry 49868 906-477-6176; northernwings.com 20450 Sibley Road, Brownstown 48193 734-281-6610; cmactrans.com 2725 Airview Blvd., Portage 49002 269-385-8321; onstaffusa.com 1882 Pond Run, Auburn Hills 48326 248-475-2000; egitape.com 700 E. Big Beaver Road, Ste F., Troy 48083 248-250-9410; goimperium.com 4141 W. Walton Blvd., Waterford 48329 248-673-3800; cpijobs.com

42463 Garfield, Clinton Township 48038 586-530-5314; aldezna.com

10301 Enterprise Drive, Davisburg 48350 248-625-3730; amcautomation.com

$1,291.3

$577.3

$319.7

$163.0

$158.0

$118.0

$135.0

$112.9

$117.0

$94.1

$90.5

$98.8 e

$59.0

$117.6

$137.0

$68.4 e

$33.9 1

$33.0 1

$26.5 1

$25.0 1

$25.8 1

$25.4

$26.8

$23.0

$18.0 1

Researched by Sonya D. Hill: shill@crain.com | This list of veteran-owned businesses is an approximate compilation of the largest businesses in Michigan. Crain's collaborated with the National Veteran Business Development Council to compile the list. Unless otherwise noted, information was provided by the companies. It is not a complete listing but the most comprehensive available. NA = not available. NOTES: e. Crain's estimate. 1. From National Veteran Business Development Council.

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NOVEMBER 7, 2022 | CRAIN’S DETROIT BUSINESS | 19

PEOPLE ON THE MOVE

Advertising Section To place your listing, visit crainsdetroit.com/people-on-the-move or, for more information, contact Debora Stein at 917.226.5470 / dstein@crain.com

ADVERTISING / MARKETING

ENERGY

INSURANCE / BROKERAGE

NON-PROFIT

Pica Marketing Group

Warner Petroleum Corporation

Kapnick Insurance

The Community House Association

The Community House Association announces the addition of Riley English and Jess Berline as new board members. In their roles, English they will provide organizational oversight and guide the organization’s business, programs, and initiatives. Riley founded English Capital Management (ECM) in 2015. ECM is a global, valueoriented investment firm focused on public equities. He graduated Berline from Stanford University and completed the Value Investing Program at Columbia Business School. Jess is a partner at Berline Consulting Group LLC. Previously, he was a teaching squash professionally for more than 20 years, producing many collegiate athletes from his program. He is a graduate of Franklin and Marshall College with a bachelor’s degree in American studies.

The Community House Association welcomes Nicole Braddock and Matt Miller as board members. In their roles, they will provide Braddock organizational oversight and guide the organization’s business, programs, and initiatives. Braddock is the store manager of the Tapper’s Jewelry at Somerset Collection. She has served as board president of The Junior League of Birmingham and was also awarded the Miller Community Minded Award by Tapper’s Jewelry for her involvement in non-profits in her hometown of Birmingham. Miller is the Director of Investment Banking at Schwartz & Co and serves on the advisory board of the Christ Child Society. He is a graduate of Notre Dame University where he majored in Finance.

The Michigan Promotional Professionals Association (MiPPA) announced Paul Zafarana MAS, MASI, as one of its 2022 Hall of Fame Award Honorees. Paul Zafarana MAS, MASI, is co-owner of Pica Marketing Group, a full-service creative agency and innovator in the industry. Pica Marketing Group has been around since 2008 and is a certified-WBENC organization. Paul and Pica Marketing Group are proud to add the Hall of Fame to their long award history of thirteen (13) PPAI Pyramid Awards for Creativity.

Nickolas Darin has joined Warner Petroleum Corporation as Chief Financial Officer. Nick has more than 25 years of experience in product distribution, manufacturing and service industries. Warner, a privately-held distributor of fuels and liquid asphalt products , serves the Great Lakes maritime industry, industrial, governmental and construction markets. “Nick’s record for creating stakeholder value makes him a great fit as we execute our growth and service initiatives,” said CEO Harry Warner.

Kapnick Insurance is pleased to announce that insurance veteran Dean Vander Plas has recently joined the Kapnick executive team in a brand-new role, Chief Growth Officer. Dean is passionate about helping individuals hone their talents and passions to work together toward a common goal--growth. He’ll be building on the efforts Kapnick has already established to help the team and company flourish.

INSURANCE / BROKERAGE CONSTRUCTION

FINANCIAL SERVICES

Roncelli

Flexible Plan Investments, Ltd.

Roncelli announces Stephanie Maynard as Director of Human Resources and Nicole Bickers as Director of Project Controls. Maynard Bickers and Maynard are being promoted from managerial-level positions. Maynard joined Roncelli in 2017. She graduated with her Master’s of Management specializing in Human Resources from Walsh College. In Maynard’s role she will continue to improve on recent significant advancements in retaining, recruiting, training, performance management and benefits & comp Bickers strategies. Bickers, Project Management Software certified, boasts nearly 23 years’ experience joining Roncelli in 1999. Bickers will be working towards improving Roncelli’s project control and reporting systems, owner insight tools and team member training.

Steve Demetrovits has joined the firm as vice president of national accounts, and will head the company’s national accounts initiatives; drive business-development efforts; serve on the company’s executive committee; and help align relationship management, sales, and marketing efforts to meet the company’s business goals. He previously held executive and leadership roles in sales management and national account management at Voya Investment Management, Stadion Money Management, and Oppenheimer.

NEW GIG? Preserve your career change for years to come.

NEW GIG? Plaques • Crystal keepsakes Preserve your career change Frames •for Other yearsPromotional to come. Items

C O N TA C T C O N TA C T

Laura Picariello Plaques • Crystal keepsakes Reprints Manager Frames • OtherSales Promotional Items lpicariello@crain.com (732) 723-0569 Laura Picariello Reprints Sales Manager lpicariello@crain.com (732) 723-0569

Oswald Companies Oswald Companies is pleased to announce that Christina Schneider has returned to its Michigan team as Senior Sales Executive, Group Benefits. Christina specializes in helping employers gain real control of their health-related employment costs by applying over 25 years of experience in benefits solutions and risk analysis. Oswald Companies is one of the nation’s largest independent, employee-owned insurance and risk management firms.

HEALTHCARE

Lourdes Senior Community Lourdes Senior Community has named current CFO, Richard Acho, as President and Chief Executive Officer, effective October 10, 2022. Rich brings over 15 years of experience in the healthcare industry explicitly serving not-for-profit organizations. He earned his MBA and MSF from Walsh College of Business and his undergraduate degree from Wayne State University. Rich has made a significant impact since joining in 2017 and is excited to carry on the mission of Lourdes Senior Community.

20 | CRAIN’S DETROIT BUSINESS | NOVEMBER 7, 2022

NON-PROFIT

Corner Property Management, LLC The Vera and Joseph Dresner Foundation is pleased to announce that David Williams accepted a new position as Principal Officer for Corner Property Management, LLC. This role oversees the Foundation’s nationwide commercial real estate portfolio as well as its community building projects. David’s experience as a real estate broker as well as his vast C suite experience brings a unique perspective that will facilitate the Foundation’s work in this arena.

NON-PROFIT

The Community House Foundation The Community House Foundation announces the addition of two new board members, Stacey Gray and Jordan Ingram. In their Gray new role as board members, they will provide financial oversight and support in protecting and growing the organization’s assets. Both have many years of experience in the finance industry. Stacey and Jordan serve on the Foundation’s Investment Committee Ingram and will continue this role in tandem with their new board positions. Stacey is a portfolio manager for CIBC Private Wealth Management and has over 30 years of industry experience. Jordan is a Banker in the Birmingham, Mich., office of J.P. Morgan Private Bank. He works with a select group of individuals and families, helping them build, preserve, and manage their wealth.

INDUSTRY ACHIEVERS ADVANCING THEIR CAREERS Recognize them in Crain’s

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FOOD & DRINK

Detroit council rejects restaurant food safety proposal Ordinance would have required placards be placed on windows of all city restaurants BY JAY DAVIS

Detroit City Council last Tuesday shot down a restaurant food safety ordinance proposal that has caused its fair share of dissension. Council voted 6-3 against the proposal, brought forth by council member Scott Benson. Benson, Angela Whitfield-Calloway and Mary Waters voted in support of the ordinance, which would have required that placards be placed in the windows of all 1,706 Detroit restaurants featuring one of three colors that reflect the results of a city Health Department inspection. Council President Mary Sheffield, President Pro Tem James Tate, and council members Fred Durhal III, Latisha Johnson, Gabriela Santiago-Romero and Coleman Young II cast votes against the proposal. “I commend (Benson) for his work on the proposal,” Sheffield said. “Hopefully we can bring it back next year with some changes.” The vote comes almost two months after City Council was set to decide on the proposal. A Sept. 6 vote was pushed to Sept. 13. The proposal was then taken off the table so council, concerned restaurateurs and community members could get more information about it. Some restaurant owners did not want the placard on their businesses at all, saying it would act as a “scarlet letter.” The “no” vote comes just a day after Benson told Crain’s he was confident that all concerns had been addressed. A memo sent to council last week including the names of more than 100 Detroit restaurants as well as the Small Business Association of Michigan and Michigan Restaurant & Lodging Association urged members to reject the proposed ordinance proposal. Restaurants in opposition include Good Cakes & Bakes, Capers Steakhouse and Firebird Tavern. The memo makes mention of alternatives offered to Benson, such as incentive-based approaches and a QR code with no color coding. Charity Dean, president and CEO of the Metro Detroit Black Business Association, on Tuesday said the ordi-

Lafayette Coney Island was ordered closed in September after city inspectors found evidence of rodents inside the popular downtown Detroit restaurant. | LAUREN ABDEL-RAZZAQ/CRAIN’S DETROIT BUSINESS

nance shows council, and Benson in particular, doesn’t care about Detroit’s small businesses. Dean, a cafe owner, has previously expressed her disdain for the proposal, saying in July that her organization wanted to be consulted before any decision was made. MDBBA COO Kai Bowman on Tuesday said Benson has been unwilling to consider alternatives for the placards. Benson on Tuesday said a compromise of a scannable QR code-only was discussed, but deemed unacceptable. He said more than 50 percent of Detroiters would not know how to get information from the QR code. Community advocate Malik Shabazz, a supporter of the food safety ordinance, on Tuesday said if the ordinance isn’t to detractors’ liking, collaboration is needed. “If people don’t like the ordinance, they can get with (Benson) and help with it,” Shabazz said. “We need to do something. Rotten meat has been throughout our city and has been for years.”

As proposed, the placards would show one of three colors that reflect the results of an inspection: ` A green sign indicates the business complies with Detroit health standards. ` Yellow signals that some issues need to be remedied. ` Red means the business would be ordered to close for health code violations. The QR code, which would be included on all of the placards, would link to an online city portal that details why a particular restaurant received its rating. Criminal penalties would be possible if restaurants are found to have fabricated or put up a false sign. Detroit Environmental Health Officer Scott Whittington on Tuesday used Lafayette Coney Island as an example. The popular downtown diner, which was shut down in September for a rodent problem, would have received a red grade. Upon reopening in late October, a yellow card would have been issued and stayed in place until another inspection was com-

pleted. The project was expected to cost about $200,000 a year, with funds coming out of the city’s general fund. The $200,000 would cover salaries and benefits for 2.5 employees, along with administrative and operating expenses. Detroit Chief Public Health Officer Denise Fair Razo on Tuesday that said the health department is budgeted for 17 health inspectors. The department currently has nine on staff, and had three additional positions accepted by applicants. That leaves five vacancies, which Fair Razo anticipates filling in the next couple of months. All Detroit restaurants are inspected at least once each year. Restaurants, bars and other food service businesses are to be inspected twice a year for higher-risk establishments, and once a year for lower-risk establishments. The risk level is based on complexity of food preparation. Benson originally called for the system to be implemented in 2019 following a three-year hepatitis outbreak in some metro Detroit restaurants.

Benson on Tuesday reiterated his point that the majority of restaurants would have nothing to worry about. He said 80 percent-90 percent would likely receive a green placard. Less than 5 percent, or 83 restaurants, would receive a yellow placard. “To get to a yellow, you really have to work at that. It takes an inspector coming out and the owner having to agree with the inspector’s point,” Benson said. “When we say ‘this would hurt restaurants,’ would it? If I have a green placard in front of my restaurant that’s a great piece of marketing material. This also shows there is some responsibility for restaurants now. “This doesn’t hurt businesses. It helps them. It ensures we’re the tip of the spear when it comes to businesses in Michigan. It puts us in a place to compete with (other big cities) for new businesses.” Waters on Tuesday said the ordinance puts the people of Detroit first. “I take seriously the responsibility of ensuring the health, safety and welfare of our citizens,” Waters said. “The citizens of Detroit need to know if the dining establishment they’ve chosen to eat in has met generic standards or, in the name of transparency, if work needs to be done to bring the establishment up to a respectable level. Yes we want more money in the community, but I can’t put profits over people.” Santiago-Romero on Tuesday said she had a change of heart about the proposed ordinance. “When I first heard about the ordinance, I was in support of it because of its transparency,” she said. “While I think the ordinance has the right intentions, I don’t think this is the right time. I want us to focus on what restaurant owners need before we ask them to feel the additional pressure that would be brought by this ordinance. I think the health department can take on the ordinance, but I don’t think the restaurant owners have what they need to succeed coming out of COVID.” Contact: jason.davis@crain.com (313) 446-1612; @JayDavis_1981

AUTOMOTIVE

Lear sales and income soar on car production improvement BY KURT NAGL

Southfield-based Lear Corp. reported improved financial performance in the third quarter, fueled by better market conditions. Lear’s net income increased 440 percent from a year ago to $92 million in the third quarter, while sales rose 23 percent to $5.2 billion, due primarily to improved production volumes. Core operating earnings increased 140 percent to $235 million for the quarter, according to the automotive seating supplier’s earnings presentation last Tuesday. All of that was aided by global car production that increased 29 percent year-over-year to 20.8 million units, while U.S. production increased 24 percent to 3.7 million units. “Our financial returns in seating lead the industry,” President and CEO Ray Scott said in a call with investors.

“Electrification and other added content in the vehicle will drive growth in e-systems. As we work through the challenging industry conditions, we are proactively taking Scott steps to position Lear for future success.” While production has stabilized compared with a year ago, the supply base is still struggling with surprise shutdowns and inflation, CFO Jason Cardew said on the call. “While we did see a modest improvement in the stability of customer production in the third quarter, industry conditions remain challenging, including the continuation of short notice down time announcements from customers in all regions,” he said.

Lear said Tuesday that it expects full-year revenue in the range of $20.55 billion to $21.05 billion. | NIC ANTAYA/CRAIN’S DETROIT BUSINESS

Cost recovery negotiations with automakers are ongoing and have been constructive in most cases, Scott said. Most customers have moved to implement long-term solutions for commodity cost increases. “The majority of the customers were of the mindset that these were

more transitory and kind of wait-andsee on getting some of these things resolved, where I believe right now the majority of our customers are more in line with a general policy and guidelines for how they’ll resolve it,” he said. Meanwhile, Lear has worked to re-

duce its labor costs. The company, which employs more than 160,000 people globally, said it cut headcount by 7,700 people earlier this year as net income plunged. The supplier is making headway in expanding its E-Systems business, which won a contract to supply General Motors Co. with battery disconnect units through 2030. The contract spurred plans for a new $80 million plant in Michigan. Lear said it achieved $400 million of new EV business wins this year and has a “clear path” to $1.3 billion of annual EV revenue by 2025. “We continue to focus our efforts on operational efficiencies, developing innovative solutions for our customers, and increasing earnings and cash flow,” Scott said in a news release. Contact: knagl@crain.com; (313) 446-0337; @kurt_nagl

NOVEMBER 7, 2022 | CRAIN’S DETROIT BUSINESS | 21

MORTGAGES

From Page 3

Rocket executives tout that the company is evolving into more of a full-service financial services firm, something they say has been playing out for several years and will become especially important in the coming quarters. “So if you go back to where we were in 2008, we originated mortgages,” Rocket Companies CEO Jay Farner said during an earnings call Thursday evening. “We did not have a large marketing apparatus, we did not have a lead generation apparatus, no servicing. And so that allowed us to only pull a few levers. If you look at what we have been building in the last four or five years, from top to bottom, we (now) control the entire funnel.” As part of that effort, the lender last week launched Rocket Rewards, a new loyalty program customers can use to earn points by doing such things as applying for a pre-qualified approval letter, using mortgage calculators and reading informational articles about the home-buying process. The points can be redeemed on transactions with Rocket throughout its plat-

form, consisting of mortgage, auto lending, personal loans and other financial services. While acknowledging the bleak environment at present for lenders, Farner said Rocket is one that is poised to make it through the tougher times. “As we are seeing significant capacity will continue to come out of the system, further industry consolidation will take place and those who aren’t well capitalized will struggle with liquidity,” Farner said, noting the company has $8.8 billion in liquidity and $4 billion in cash. “In the end, only the strong will be left standing.” Ishbia, however, takes a completely different viewpoint of the current landscape. The record-setting $4.4 trillion mortgage market of 2021 was hardly sustainable, according to the UWM boss, and this year’s forecast $2.26 trillion market makes for a much more normal environment. “I don’t think it’s that tough of an environment,” Ishbia told analysts of the current market. “I think it’s obviously tougher than it was last year, but last year wasn’t real.” Contact: nmanes@crain.com; (313) 446-1626; @nickrmanes

Mortgage rates over the years The annual average for a 30-year fixed-rate mortgage has remained fairly steady over the last 10 years, but saw a large swing from 2021 to 2022. Annual average rates

4.5%

3.5%

3% 2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022*

*2022 DATA IS THROUGH SEPTEMBER. SOURCE: FREDDIE MAC

UWM finances United Wholesale Mortgage’s revenue and net income since late 2020. $1.8B $1.4B $1B Revenue $600M Net income $200M 2020 Q4

2021 Q1

2021 Q2

2021 Q3

2021 Q4

2022 Q1

2022 Q2

2022 Q3

SOURCE: UNITED WHOLESALE MORTGAGE

Rocket finances Rocket’s revenue and net income since late 2020. $4.5B $3.5B $2.5B Revenue

$1.5B $500M

2020 Q4

Net income

2021 Q1

2021 Q2

2021 Q3

2021 Q4

SOURCE: ROCKET COMPANIES INC.

22 | CRAIN’S DETROIT BUSINESS | NOVEMBER 7, 2022

2022 Q1

2022 Q2

2022 Q3

REAL ESTATE

Lakeside Mall in Sterling Heights opened in 1976. | COSTAR GROUP INC.

Sterling Heights signs off on Lakeside Mall redevelopment project BY KIRK PINHO

After more than two hours of discussion, the Sterling Heights City Council has approved moving forward with a redevelopment plan that would raze Lakeside Mall. Under a memorandum of understanding that was green-lit with a 5-2 vote, Miami-based Out of the Box Ventures would tear down the shopping center, which sits on 110 acres, and replace it with more than 2,800 residential units, plus new retail, office and hotel space in a $1 billion project over the course of 12 years. A key component is a $45 million public bond that would be issued to pay for public infrastructure improvements at the site at Hall and Schoenherr roads. Henry Yanez, a council member who said he “may be the skunk at the party,” opposed the measure because he “can’t support the people of Sterling Heights partnering in this way, taking out this bond, using the good faith and credit of the people of Sterling Heights to support a private corporation maximizing profits.” But Mayor Michael Taylor, a supporter of what he called “an incredible project” that’s currently being referred to as Lakeside Town Center, countered that “the city’s risk here is as low as we could possibly get it.” “The general fund is not going to be impacted by it,” Taylor said. Yanez also expressed concern about the cost the city would incur for things like plowing a pathway that’s proposed to go around the development. That triggered an animated response from Taylor: “With all due respect, Councilman Yanez, what on earth are you talking about? This is taking 110 acres of the most underutilized property, perhaps in the entire state of Michigan, if not the Midwest, and proposing $1 billion of investment to radically transform it into the most unique shopping, dining, residential experience in Metro Detroit, outside of probably the city of Detroit.” Demolition on the mall could begin in the fourth quarter of 2024 or early 2025, said Colin Carby, director of development for Out of the Box Ventures, which is run by Ophir Sternberg. “This is only the start of a conceptual site plan process,” Carby said. Multiple approvals on things like a planned unit development, site

plans and other factors are still required for the project to go forward, with the first phase starting perhaps in 2027. One mall tenant who spoke during public comments expressed concern about the timeline and lack of communication on the demolition timeline. Carby said Detroit-based Sachse Construction has been doing pre-construction and estimating work on the project.

The plan

public bonds to pay for a property to house what was proposed to be a $146 million movie studio, looking to cash in on what was then the state’s lucrative film tax credits. The studio was a bust, and the city was left holding the bag, eventually falling under emergency management. Sterling Heights says it would not be required to issue a bond until a series of milestones are met, including securing brownfield funding from the state, beginning demolition on the mall, final site plan approvals, a letter of credit, a conditional commitment letter from a Phase 1 lender and a special assessment district is approved that Out of the Box Ventures would pay covering any shortfall on public bond payments.

According to the MOU, pre-development activities like the mall’s demolition, plus design and abatement, total about $70.9 million, for which Out of the Box Ventures will seek reimbursement through the Recreating the mall city’s brownfield program (about $25 million over 30 years) and a Corridor In recent years, malls including Improvement Authority (about $45 Summit Place in Waterford Townmillion over 25 years). ship, Eastland Center in Harper Both incentive programs capture Woods and Northland Center in increases in property tax values and Southfield have faced at least some those increases are used to reim- form of demolition as consumer and burse a developer for various ex- retail trends have changed. Malls penses incurred in the development such as Fairlane Town Center in Dearborn and The Mall at Partridge process. Out of the Box Ventures would is- Creek in Clinton Township have sue a private bond with a 7 percent been hit with financial challenges interest rate to cover those $70.9 mil- that have threatened the ownership. The blighted and vacant Summit lion or so in costs. However, there is anticipated to be Place Mall on the Waterford/Pontiac a cash shortfall totaling about $45 border was torn down, leaving its 74 million the first 12 years of the proj- acres at Telegraph and Elizabeth ect because of annual debt service Lake roads up for redevelopment by on the private bond and the delay in Southfield-based owner Ari-El EnTIF reimbursements, “THIS IS TAKING 110 ACRES OF THE MOST so the city would issue a UNDERUTILIZED PROPERTY, PERHAPS IN $45 million THE ENTIRE STATE OF MICHIGAN, IF NOT THE public bond, funding from MIDWEST, AND PROPOSING $1 BILLION OF which Out of INVESTMENT TO RADICALLY TRANSFORM IT.” the Box Ventures could — Michael Taylor, mayor, Sterling Heights tap into as frequently as monthly, with approv- terprises Inc. als and documentation. Eastland Center has been razed by The public bond would only pay Riverside, Mo.-based developer for publicly owned assets like streets, NorthPoint Development LLC, lighting and water and sewer lines. which is turning the east-side site The bond would be repaid with into more than 1 million square feet TIF dollars, not from the city’s gener- of warehouse and industrial space in al fund — which could help stave off a $94 million project. Northland some consequences others have Center is the subject of a plan that’s faced when using public bonds to similarly ambitious to the Lakeside Mall vision. fund private development. It wasn’t all that long ago that the city of Allen Park teetered on bank- Contact: kpinho@crain.com; ruptcy after issuing $31 million in (313) 446-0412; @kirkpinhoCDB

QLine ridership numbers are climbing back after an 18-month pause during the COVID-19 pandemic. | M-1 RAIL

QLINE

“WE NEED AS MANY MOBILITY OPTIONS IN THE CITY AND THE REGION AS POSSIBLE. IT WORKS REALLY WELL WHEN USED WITH OTHER MOBILITY OPTIONS.”

From Page 3

Operators also suspended charging a fare “indefinitely,” M-1 Rail President Lisa Nuszkowski told Crain’s on Thursday. The service has received state, federal and philanthropic dollars and has operated fare-free after resuming service with plans to bring back fares in April, the report stated. However, funding from the Penske Corp. and Kresge Foundation has enabled M-1 Rail to keep the service free, according to the report. Nuszkowski, who joined M-1 Rail full time last year to manage day-today operations, previously spearheaded the launch and operation of Detroit’s nonprofit public bicycle-sharing system, MoGo Detroit Bike Share. Keeping the QLine fare-free has been critical as people to return to their offices and become reacquainted with the city following the height of the pandemic, Nuszkowski said. According to the 2021 Bureau of Labor Statistics Consumer Expenditures report, transportation accounts

“During the service pause, we evaluated every aspect of operations and we decided to make the transition to a locally managed and operated team, and it’s been an incredible success,” Lijana said, noting a dramatic increase in service quality. M-1 Rail was also given the ability to tow vehicles obstructing the QLine’s path by the Michigan Legislature last year, which it began to exercise about four months ago after sorting out terms with the city of Detroit, Nuszkowksi said, and Stepp’s Towing donated a tow truck to M-1 Rail. No revenue or fees are collected; it’s simply used to remove blockages and reduce response times. It has also permanently dedicated a transit lane in front of Little Caesars Arena for QLine and other transit vehicles. Nuszkowksi said she’s looking at other high-traffic places in the city to implement transit lanes to reduce backups. “The QLine was always intended to inspire additional investments in transit, so of course we would love to see additional service, but that’s a questions that involves a whole lot more stakeholders, people and entities than just the QLine,” Lijana said.

heavily sensitive to the stock market and a potential harbinger for pain ahead, has been laying off workers en masse. More than 780 companies in the sector have laid off staff this year, impacting nearly 93,000 people, according to data tracker layoffs.fyi Economic models from Bloomberg Economics reached a 100 percent certainty for a recession in the next 12 months. The question, of course, remains how large will the recession be? Will

businesses simply get enough relief to boost margins? Will consumers get relief in rising prices? Or will inflation continue amid an economic contraction — the dreaded “stagflation” not seen since the 1970s? It’s quite literally impossible to know. The economy hangs in the balance but it’s clear the path it’s on won’t continue into the next gubernatorial administration. Whitmer or Dixon will face change. If the economy swings to a small

downturn that stabilizes prices, whomever is governor gets a big, big win. If that balancing act fails, the next governor will be scrutinized and their administration will ultimately be judged on the success or failure of the Michigan economy. That is far more certain than the scope and depth of the next recession.

— Lisa Nuszkowski, president, M-1 Rail

for 16.4 percent of annual expenditures nationwide, an 11.6 percent increase from the previous year after an 8.5 percent decrease in 2020. “We need as many mobility options in the city and the region as possible. It works really well when used with other mobility options,” Nuszkowski said, as people can park near or walk to a QLine station to travel Woodward Avenue, bike or bus through the inner streets and travel across the city in a variety of ways. A QLine survey of nearly 1,000 people this past summer found about half of riders live within walking distance of the streetcar line and 63 percent said they were satisfied or very satisfied with their experience. Most riders surveyed said they were 25-44 years old and rode the QLine to get to entertainment such as sports events, concerts, restau-

WALSH

From Page 6

A month ago, Livonia-based Trinity Health, the nation’s fifth-largest health care system, reported a $1.4 billion loss for its latest fiscal year. The health system, with 92 hospitals nationwide and eight in Michigan, reported a loss on revenue of $19.9 billion for the 12 months that ended on June 30, largely due to a $1 billion

rants and bars, as well as recreation and shopping. The QLine budget was $9.9 million with a staff size of 44, Lijana said. When QLine plans were in the works, Lijana said, the team had two goals: Join and advocate for a larger, more connected regional transit, and spur investment and improvement along Woodward. “It’s obviously the most comfortable and convenient way to explore the Woodward Corridor,” Lijana said, with large windows, comfortable seating, complimentary Wi-Fi, heating and real-time information on service time. M-1 Rail has offered ride parks by partnering with companies along Woodward to offer discounts for QLine riders at the Selfie Museum of Detroit, Carhartt, Vault of Midnight,

Happy’s Pizza and more. Riders also got discounts for the North American International Auto Show earlier this year. “We’ve made a serious investment of time and resources in establishing closer relationships with entities along the corridor,” Lijana said. To shorten QLine travel time, the agency added transit signal priority equipment to 26 intersections along Woodward, which adjusts traffic signal timing to reduce the amount of time the streetcar spends waiting at red lights. “We can’t change the signals, but we can hold the green a little longer as we’re approaching,” Lijana said. Average travel time for end-toend trips is now 23 minutes, Lijana told Crain’s. It was 26-28 minutes in 2019 and early 2020, he said, adding that the times were “far more variable then. Service is much more consistent now.” M-1 Rail canceled its operations contract with Lombard, Ill.-based transportation management Transdev Services Inc. last year due to staffing issues and brought services in-house, which Lijana said the agency plans to continue.

Dixon

Whitmer

loss on its investment portfolio. The U.S. tech sector, which is more

Contact: dwalsh@crain.com; (313) 446-6042; @dustinpwalsh

NOVEMBER 7, 2022 | CRAIN’S DETROIT BUSINESS | 23

WAYNE

From Page 1

Glassman Kia in Southfield has seen around a dozen cars brought into its service center with hot-wire-related damages. | GLASSMAN KIA VIA FACEBOOK

KIA BOYZ

From Page 1

Although TikTok has removed the videos, thefts are on the rise, said Detroit Police Commander Eric Decker, who works in the department’s organized crime unit. “The social media is huge. It’s basically told a large population how to steal a vehicle and made it sexy and fun,” Decker said. “It’s been a huge tax on our resources. I mean, unfortunately in the city of Detroit, we have a lot of violent crime to deal with, and this is lesser crime that we have to put resources towards.” As of mid-October, 259 Kias and 103 Hyundais have been stolen in Detroit this year, according to DPD. The number of Kias and Hyundais stolen spiked 240 percent to 88 in July compared with June, representing the TikTok trend taking hold in Detroit. Around 10 Kia and Hyundai vehicles were stolen each month in the first half of the year, compared with an average of 88 per month in the second half. More than 85 percent of the stolen cars have been recovered, and 12 arrests have been made. Most have been juveniles, Decker said. “It’s absolutely joy riding,” he said. “The percentage of recovering vehicles is very indicative of purely joy riding the vehicle.” The cars susceptible to theft are Kia vehicles built 2011-21 that use a steel key to start the car as opposed to a push start control. Susceptible Hyundais include a dozen 2016-21 models without push start controls, including Accent, Elantra, Sonata, Forte and Soul. The ignition systems, which lack immobilizers, can be hot-wired with USB cords in a few easy steps demonstrated through countless videos that have amassed millions of views online. The craze has created problems for Glassman Automotive Group, said George Glassman, president of the company, which operates Glassman Kia in Southfield. The dealership was hit in August when thieves lifted a Kia Forte from the lot and attempted unsuccessfully to steal a Kia Soul that had a dead battery. The perpetrators were not caught. The Soul had interior damage, while the stolen Forte was found stripped of parts and deemed a total loss. “The people were hooded and masked and literally broke in the car

Cars susceptible to the “Kia Boyz” theft trend are Kia vehicles built 2011-21 that use a steel key to start the car as opposed to a push start control. | ISTOCK

in 15-20 seconds,” Glassman said. “There are a lot of good things that can come out of certain postings on social media, and unfortunately, this is the darker side. You literally can’t catch up fast enough. By the time people realize these videos were out there, who knows how any vehicles may have been targeted.” Glassman said the dealership has seen around a dozen cars brought into its service center with hot-wire-related damages. He said it’s slowed down since last month. “There’s been a fair amount of coverage on this, so I think people are taking some additional precautions that they might not have taken prior to now,” he said. Decker said the police department saw a slight decline of thefts in September, likely due to kids returning to school, but October is on track to have the most thefts yet. As of Oct. 19, there were 120, closing in on the previous monthly high of 133 in August. “I don’t think it’s getting much better,” Decker said, adding that other police departments in metro Detroit have said the problem remains persistent. Kia and Hyundai, which are owned by South Korean parent Hyundai Motor Group, have tried rolling out fixes for the issue as they face mounting backlash, including more than a dozen class-action lawsuits around the country, Automotive News reported. “We remain concerned about the increase in thefts of certain Hyundai vehicles that have been targeted in a coordinated social media campaign,” Ira Gabriel, senior group manager of corporate and marketing PR for

24 | CRAIN’S DETROIT BUSINESS | NOVEMBER 7, 2022

Hyundai Motor America, said in an email. “Hyundai provides steering wheel locks, as available, to law enforcement agencies in impacted areas.” Additionally, the automaker said it has released a “glass break sensor security kit” available for $170 at dealerships and Compustar authorized dealers across the country. It is also developing a software update to make it more difficult to steal susceptible vehicles. The update is expected to be available in the first half of 2023. “Some earlier models, without a push-button ignition, do not have engine immobilizers,” Gabriel said. “In November 2021, engine immobilizers became standard on all Hyundai vehicles produced.” Glassman said the dealership has used The Club steering wheel locks to deter thieves and recommends customers do the same. Decker said that in addition to steering wheel locks, police recommend after-market alarm systems and suggest parking in well-lit areas. Most of the thefts have happened in residential areas, he added. This isn’t the first time police have dealt with a spate of stolen vehicles influenced by security vulnerabilities. Decades ago, Dodge Neons were the target of thieves who would use split tennis balls to unlock its doors. That trend didn’t spread nearly as far or as quickly, though. “Those other trends were more word of mouth, more specific to groups,” Decker said. “This just got so much larger.” Contact: knagl@crain.com; (313) 446-0337; @kurt_nagl

aro said. She has notified several that the additional funding from the county is not coming through NEI. Dinaro said the initiative is still moving forward with plans to fund those organizations, especially in Ecorse, Inkster and River Rouge — communities of color where small businesses were hard-hit by the pandemic and not as successful in pulling down federal relief dollars. “But it’s going to look different than it would have with the Wayne County infusion of funds," she said. NEI’s private funders, which earmarked $22 million of their larger commitments to NEI to support nonprofits serving Wayne County entrepreneurs, are still committed to that, regardless of what the county is doing, said Dinaro. “It was just a great way to leverage additional funds.” Private support for NEI’s match comes from commitments from the Community Foundation for Southeast Michigan, where it is housed, and other private funders, including Ford Foundation, Hudson-Webber Foundation, JPMorgan Chase, Kresge Foundation, Ralph C. Wilson Jr. Foundation, W.K. Kellogg Foundation and William Davidson Foundation. NEI was expecting to fully launch the program no later than Oct. 1, but began making grants to nonprofits supporting Wayne County entrepreneurs this summer, Dinaro said. Initial grants to Wayne County groups totaled just under $600,000 of more than $3 million grants made by NEI since July. Wayne County grant recipients and awards included: ` Arab American Women’s Business Council — $60,000. ` Detroit Community Wealth fund — $125,000. ` Detroit Hispanic Development Corp — $120,000. ` Metro Detroit Black Business Alliance — $150,000. ` Great Lakes Womens Business Council — $135,000. The grants are funding efforts including micro loans, technical assistance (such as accounting, legal and marketing services or business plan development) and other assistance provided directly

Last week, NEI, a foundation-led, economic development initiative launched in 2007, received an email from the county, saying the project had been canceled and the decision was final. NEI Executive Director Wafa Dinaro said county officials have not responded to her messages and emails. “I’m incredibly disappointed because this had the opportunity to impact a lot of businesses.” Small business and nonprofit relief have remained a priority of Wayne County Executive Warren Evans since the onset of the COVID-19 pandemic, Luz Meza, director of Wayne County Economic Development Department, said in a statement emailed to Crain’s. “The Evans administration has contributed Dinaro more than $60 (million) in small business relief and remains committed to the ongoing support of small businesses. During a change in leadership and as the process to develop our Small Business Hub went on, Wayne County leadership determined that it Meza would be most beneficial to build direct relationships with stakeholders in this work,” she said. “We will continue to make small businesses a priority through the investment of ARPA funds in projects such as the small business hub while continuously integrating input from our small business stakeholders. We strive to deliver a transparent process as we continue to make strides in economic development within Wayne County.” Leadership shifts this fall at the county included the departure of Khalil Rahal, former chief administrative officer for the county, who previously had oversight of its ARPA spend. He left in September after five years to become director of economic development for DTE Energy Co. Assad Turfe, a 20-year veteran of the county, who was promoted to deputy county executive in September, has taken on oversight of the county’s ARPA spend, the county said. And Meza, who had been interim director of Wayne County Economic “I’M INCREDIBLY DISAPPOINTED Development Department after Din- BECAUSE THIS HAD THE aro left the county in OPPORTUNITY TO IMPACT A LOT OF February to join NEI, assumed the BUSINESSES.” director role this — Wafa Dinaro, NEI executive director fall. Wayne County has spent less to small businesses. than $5.18 million of the $339.7 Small business owners have tremillion in ARPA funding that mendous potential to increase came to the county, according to wealth in their neighborhoods, The Brookings Institution, which but they face additional barriers to is tracking how large cities and accessing the capital and resourccounties deploy ARPA funding. es they need to thrive, Dinaro said. More than three-quarters of the “We’re working to build a stronamount spent so far was allocated ger network to support womento government wages/hiring to and minority-owned businesses," support proper tracking of ARPA she said. "Their success is key to funds. building a more resilient new The county had already reached post-pandemic economy.” out to several nonprofits it wanted to be a part of the Small Business Contact: swelch@crain.com; Hub when it was announced, Din- (313) 446-1694; @SherriWelch

Population change by select Michigan counties

Greater Grand Rapids’ growth

The percent change in population for select Michigan counties from 2010 to 2020.

The percent change in population growth in Kent County, Grand Rapids and major suburbs from 2010 to 2020. 9.2%

Kent County

10%

Grand Rapids

5.8%

Wyoming

6% 11.5%

Kentwood

8.3%

Marquette

Chippewa

Mackinac

Sanilac

Huron

Bay

Alpena

Cheboygan

−5%

6.8%

Walker

4.6%

Grandville

9.5%

Ada

Charlevoix

Grand Traverse

Midland Leelanau

Gratiot

Isabella

Mecosta

Van Buren

Berrien Kalamazoo

Eaton

Ingham

Allegan

Muskegon

Kent

Ottawa

Jackson

Washtenaw

Oakland

Macomb

Wayne

Lenawee

Plainfield Township

28.2%

Caledonia

6.3%

East Grand Rapids Sparta

3.1%

Lowell Rockford SOURCE: U.S. CENSUS BUREAU

CRAIN’S DETROIT BUSINESS GRAPHIC

5.5% 7.4%

SOURCE: U.S. CENSUS BUREAU

CRAIN’S DETROIT BUSINESS GRAPHIC

POPULATION

From Page 3

According to Census Flows Mapper, a tool that tracks migration patterns, from 2015 to 2019 (the most recent data available), many of the population changes in KOMA were due to people moving from one West Michigan county to another. But the top sources of inbound migration to KOMA from outside the region were residents coming from other Michigan counties such as Oakland, Wayne, Macomb, Monroe, Kalamazoo, Montcalm, Ingham, Newaygo, Ionia and Oceana. Top out-of-state migration sources included the metro areas of Chicago; Dayton, Ohio; Atlanta; Tampa, Fla.; Houston; Phoenix; Indianapolis; Troy, N.Y.; and Nashville, Tenn. OnTheMap, a geographic information systems tool that maps census data, shows the top industries by number of jobs in Kent County from 2012 to 2019 were business support services, health care, manufacturing, retail and wholesale trade, accommodation and food services, and construction. Of those, the fastest-growing industries by total number of jobs were business support services, health care, manufacturing and construction. Paul Isely, an associate dean and longtime economics professor at the Seidman College of Business at Grand Valley State University in Grand Rapids, said the ranking is a bit deceptive, because many jobs that used to be classified as health care or manufacturing were outsourced to professional services firms. Those people still technically work in the industries they support; they’re just classified differently. Either way, he said the data shows most of the new jobs pulling people to the region are in those top four industries. “We have a diversifying market here where we have different types of jobs that are growing, we have a wider group of jobs that are growing, and that’s allowing people to move back into the area,” Isely said. “Anecdotally, we’re seeing people who used to live here come back, and we’re seeing people choose to move here, because there are now jobs available for them, and we have a cost of living that is better than on the coasts.”

What residents say Chelsea Keeton is senior manager of marketing and public relations for the pharmaceutical company Grand River Aseptic Manufacturing, just

Rachel Gray (left, standing) is executive director of Hello West Michigan, a talent attraction organization that hosts programs like Rapid Roots that help participants make new friends and experience West Michigan’s arts and culture, outdoor recreation, and food and nightlife. Here, the group holds a discussion at the Frauenthal Center performing arts theater in downtown Muskegon. | HELLO WEST MICHIGAN

west of downtown Grand Rapids. GRAM recruited her from the east side of the state in 2019 — she’s a native of Northville, and her husband is from Ann Arbor. Jill Quillen, GRAM’s senior human resources manager, said the company has hired about 10 percent of its 360 employees from outside West Michigan. Keeton said the opportunity to work in the fast-growing life sciences industry was just one component of her family’s decision to move to Ada, a Grand Rapids suburb of about 14,000 residents that grew 9.5 percent from 2010-20. She and her husband were drawn to the city’s proximity to Lake Michigan and “Up North”; Grand Rapids’ downtown; the bounty of good suburban schools; and a healthy job market that meant if her remote worker husband needed to change jobs, he could. Another factor was the price of housing, which Keeton said was more affordable in West Michigan than in Southeast Michigan in 2019. “Then, it was just a matter of asking different people that we knew (about living here), and everyone loved it,” Keeton said. “I can’t imagine being anywhere else. We’re very happy here.” Rachel Gray is executive director of Hello West Michigan, a talent attraction nonprofit that is a subsidiary of The Right Place economic development organization. A native of Genesee County, Gray stayed in Grand Rapids after graduat-

ing from Aquinas College. She joined Hello West Michigan as program manager in 2013. Gray said Keeton’s experience is like that of a lot of transplants to West Michigan who come for a job and are pleasantly surprised by the cost of living, diverse economy, natural amenities, arts and culture, and easy driving distance to other attractions. “I definitely hear about the accessibility and geography,” she said. Doug Small is president and CEO of Experience Grand Rapids, the destination marketing arm for Kent County. He moved to Grand Rapids from Denver in 2008 and immediately felt the area “has something special,” from its food and beverage scene to its lakes and waterways. He said it’s not just the quality of life that draws people here. He believes the West Michigan economy — with its health sciences, furniture manufacturing, higher education and burgeoning technology scene — is more diversified than the east side of the state, where he sees the auto industry and its suppliers as still very dominant.

What others can emulate Small, Keeton and Gray all said West Michigan’s “special sauce” — the reason people stay — is the spirit of public-private collaboration. “I’ve had the privilege of working in five destinations, and I’ve never seen anything like it,” Small said. “I think that’s one thing we have over

Denver, is that our chamber, The Right Place, (Experience Grand Rapids), Downtown Grand Rapids Inc., and our public officials at the city and county — we all play well together. It doesn’t mean we might not have differences, but I’ve never seen anything like it, and think that’s why we get things done differently and we continue to grow in a strategic way.” Keeton said when she moved to the area, she didn’t know anyone, but she found people were willing to help her with projects when they didn’t have to. One example was a brand awareness campaign she partnered on with the Grand Rapids Chamber that was called “Grand Rapids x GRAM.” The video series featured city leaders, business owners and State Rep. Peter Meijer making a case for why talent should move to the area and why GRAM’s prospective clients should bring their business there. “You would not get that on the east side of the state,” Keeton said. “It would be much more challenging, and people would say that they don’t have the time, and it would just be much different.” Gray said Hello West Michigan does its bit to foster a sense of collaboration and belonging. The organization offers programs like ReThink West Michigan, geared toward bringing people back who have moved away, through networking parties on the night before Thanksgiving, and Rapid Roots, designed to acclimate new residents to the region and help them forge connections with peers.

Rapid Roots had its pilot cohort of 10 participants in spring 2022, and sessions included education on the history, arts and economy of West Michigan, as well as experiential components like networking, recreation, and food and nightlife. “It was so cool to see them coalesce as a group and to have their eyes light up about this place where they are living,” Gray said. “Relocation can be such a slog, and so stressful, especially when you’re starting a new job … so to see them, through the sessions and experiences, stop and look around and say, ‘Oh my gosh, I didn’t know that West Michigan offers this,’ is really rewarding.” Gray said Hello West Michigan, as far as she knows, was the first organization of its kind when it was founded in 2007, and at the time, it focused on boosting West Michigan’s talent pool. But since then, especially during COVID, it started partnering with counterpart organizations in Detroit, The Thumb and Northern Michigan to boost talent attraction around the state. “If Michigan is going to be the top state in the Midwest for in-migration, all of our regions need to attract talent,” she said. “We can’t have a ‘rob Peter to pay Paul’ strategy.” Gray said she thinks regions across Michigan can do better with retention by working to increase the affordable housing supply and by forgi n g industry “clusters” — concentrations of jobs in similar fields — so that if someone wants to find a new role, they can do so without moving. She said The Right Place’s September announcement of its new 10-year strategy for creating a tech cluster in Grand Rapids is one step in the right direction. Small said Grand Rapids leaders already created one industry cluster within the past 15 years — Medical Mile — and other parts of the state can learn from West Michigan’s tendency to be “nimble” and take advantage of growth opportunities through public-private collaboration. Still, the city has its challenges. Small said Grand Rapids has more work ahead to build its brand as a “cool city,” but it’s making strides. One example: The planned Grand River restoration and activation that’s in progress. “If you build a place where people want to visit, then you really build a place where people will want to live,” he said. Contact: rachel.watson@crain.com (989) 533-9685; @RachelWatson86

NOVEMBER 7, 2022 | CRAIN’S DETROIT BUSINESS | 25

THE CONVERSATION

Fun is the name of the game for Zap Zone, Best in Games founder Zap Zone founder Gaz Ismail is all about fun. Since coming to Michigan from Montreal in 1994, the 52-year-old has made his mark on Michigan’s entertainment business. Ismail, whose first Zap Zone opened in 1994 in Canton Township, in the past 30 years has expanded to 10 Zap Zone locations, including one in Windsor. Ismail’s other ventures include Bonaventure Skating Center in Farmington Hills, Rollerama in Brighton, five Escape Room-Zone locations, and Azra Chamber of Horrors in Madison Heights. His latest funhouse is Best in Games in Ypsilanti — a $30 million, 74,000-square-foot “eatertainment” venue that features three levels of activities including ax throwing, laser tag and bumper cars. Best in Games opened this spring — around the same time as a handful of other venues offering similar attractions. Ismail talked with Crain’s about his niche and what separates his offerings from other large-scale “fun” businesses. | BY JAY DAVIS ` Best in Games opened in the spring. How’s business so far? It’s a fun, exciting place. It’s probably one of the first places in the world that offers entertainment for kids and adults. A lot of those type of venues go one way or another, but it makes sense to offer something for everyone. You take your kids to have fun, but parents should be able to do the same in the same space. ` Best in Games opened around the same time as a handful of other “eatertainment” venues. Has an increased number of options affected your business? Best in Games is different because it has everything you can imagine. I’ve been to L.A., New York, Las Vegas, even Dubai, and there’s nothing like it. It’s a concept from my mind. It’s not an ax-throwing place that has a bar, or a go-kart place that has a bar. It has all of those things and then some, plus three bars with their own personality. We’re three floors of fun inside 75,000 square feet of massive entertainment. It’s well thought out. Every space is different. There’s a 6-foot disco ball in one space with shimmering walls. We have a Gravedigger (monster truck) motion ride. We have (virtual reality) trampolines and climbing walls. What we offer is just different. ` Best in Games opened at what some would call the tail end of the pandemic. How have your other businesses done over the last two and a half years? The metro Detroit community supported us throughout COVID. It’s been a very difficult thing to go through. To stay in business, we did more private parties. We had to invest

was playing the game as a youngster and I loved it. I built a (laser tag) center in Windsor in 1993. I thought, “Michigan doesn’t have anything like this.” The first laser tag venue in Michigan was in Canton at Zap Zone in 1994. It was a fad. People would drive four to five hours just to come play. The reason we chose Canton was we kept hearing Plymouth-Canton had one of the largest high schools, so we thought it made sense to start there.

Gaz Ismail is the founder of Zap Zone and Best in Games

a lot into cleaning so people would feel safe. We had a special machine, an ionizer, that’s used in hospitals. In the beginning, we put hand wipe stations everywhere. We were constantly cleaning games. We limited capacity severely. We probably lost more than 50 percent of our revenue across all the businesses. We didn’t make as much money, but we survived. `You own a lot of “fun” businesses. Was that always the plan for your portfolio?

I enjoy the fun. I’m a fun, upbeat person. I design fun. I spend a lot of time researching, traveling to different areas. When people go to Florida, they want to be on the beach. I go to a fun center. It’s just part of my nature. ` You’ve been in Michigan for close to 30 years. Why did you come over from Canada? It’s a nice market. Laser tag was developed in London. That was one of the first laser tag sites in the world. I

` Was branching out always in your plans? I was opening two stores a year in the beginning. We were in Canton, but a lot of people would come from Ann Arbor, so we opened a Zap Zone there next. People would come to Canton from Farmington. That’s how we branched out there. We just kept doing that and Zap Zone kind of became a staple in metro Detroit. We’re probably like family to metro Detroiters. I feel like a family member to anyone who comes into any of our businesses. We’ve branched out into so many areas of the market. If you look at a city like Chicago — I’ll say Chicago because it’s similar to Detroit — they don’t have as many fun centers per capita as we do. There’s no other city in the U.S. where you can drive less than 20 minutes and find another center. I love that. ` Any plans to expand further? We always have plans to move forward in every direction. We love this community 100 percent. I wouldn’t choose any other place in the U.S. to be. I think the next move is to see how Best in Games does and possibly build a massive center in another state.

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RUMBLINGS

American Axle says it is not for sale following reports of talks AMERICAN AXLE & MANUFACTURING Holdings Inc. said that it is not for sale and not engaged in discussions to sell the company following a report suggesting otherwise. “AAM is aware of the media activity regarding the company on November 3rd,” the Detroit-based automotive supplier said in a statement. “While our long-standing policy is to not publicly comment on market rumors and media speculation, we feel it is important to state that we are not engaged in any discussions to sell the company and that we are not otherwise for sale.” The statement, released shortly before the company is scheduled to present third-quarter financial results, came a day after Bloomberg reported on talks of a takeover. According to the report, Ameri-

American Axle denied the company is for sale but said it will “regularly consider strategic opportunities” in its best interest. | AMERICAN AXLE

26 | CRAIN’S DETROIT BUSINESS | NOVEMBER 7, 2022

can Axle has sparked “preliminary interest” in a transaction from London-based Melrose Industries Plc and has had contact with Auburn Hills-based BorgWarner Inc. and Maumee, Ohio-based Dana Inc. Dana and BorgWarner declined to “comment on rumors.” While denying talk of a sale, American Axle said it is considering “strategic opportunities that serve the best interest of the company.” “In the ordinary course of executing on our strategic plan, we continuously monitor market conditions and assess industry developments and we regularly consider strategic opportunities that serve the best interests of the company (including our customers and associates) and its shareholders,” the company said.

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